July 4, 2013 / 3:56 PM / 5 years ago

EMERGING MARKETS-Vale, OGX help Brazil's stock index rebound from sell-off

* Brazil's Bovespa rises for first session in five
    * MPX Energia jumps after Batista steps down as chairman
    * Bovespa rises 2.1 pct, Mexico IPC up 0.77 pct

    By Asher Levine
    SAO PAULO, July 4 (Reuters) - Brazilian stocks rose for the
first session in five on Thursday as bargain-hunters picked up
shares of commodities producers OGX and Vale to take advantage
of recent losses.
    Mexico's IPC index rose slightly, while Chile's
bourse capped a three-day decline.
    Traders said a market holiday in the United States kept
volumes low.
    Brazil's benchmark Bovespa stock index partially
rebounded from a four-day, 5.4 percent slide, rising 2.1
percent. The index had closed at its lowest level in over four
years on Wednesday.
    "It's a day where we're seeing a technical recovery, a
one-off thing. If you look at the outlook for the market, not
much has changed," said William Castro Alves, an analyst with XP
Investimentos in Rio de Janeiro.
    Shares of OGX Petroleo e Gas Participacoes SA,
the oil company controlled by Brazilian billionaire Eike
Batista, jumped 20 percent after reporting an increase in oil
output in June from May. The shares had fallen 58 percent over
the previous five sessions after the company said it was pulling
out of some offshore oil blocks.
    Shares of power generator MPX Energia SA, also
part of Batista's Grupo EBX conglomerate, jumped nearly 13
percent after the company said Batista was stepping down as
chairman and it would sell 800 million reais of stock rather
than hold a planned share offering. 
    Shares of mining firm Vale SA notched their
biggest gain in three weeks, rising 3.3 percent and nearly
making up for the previous two sessions' losses the day after
the firm received environmental approval to build a $19.5
billion expansion to its giant Carajas mine in the Amazon.
    Morgan Stanley & Co analysts led by Yang Bai raised their
recommendation on Brazilian equities to "equal weight" from
"underweight" on Thursday, saying that a recent rout in the
market was overdone.
    Mexico's IPC index gained 0.77 percent, but found
technical resistance near its 60-day simple moving average for
the fourth straight session.
    Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, rose 0.7 percent, while lender Grupo
Financiero Banorte added 1.5 percent.
    Chile's IPSA index rose for the first session in
four, adding 0.57 percent as shares of lender Banco Santander
Chile rose 1.5 percent.
    Latin America's key stock indexes at 1528 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,110.74      1.27    -19.12
 Brazil Bovespa               45,988.18       2.1    -24.55
 Mexico IPC                   41,142.84      0.77     -5.86
 Chile IPSA                    3,869.67      0.57    -10.04
 Chile IGPA                   19,187.43      0.47     -8.94
 Argentina MerVal              3,081.32      1.92      7.95
 Colombia IGBC                12,688.43      0.12    -13.78
 Peru IGRA                    15,456.25      0.04    -25.08
 Venezuela IBC                     0.00         0   -100.00
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below