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EMERGING MARKETS-Brazil stocks rise on BTG-Batista deal, Petrobras
March 7, 2013 / 10:08 PM / 5 years ago

EMERGING MARKETS-Brazil stocks rise on BTG-Batista deal, Petrobras

* Brazil Bovespa up 1.56 pct, Mexico IPC down 0.43 pct
    * Eike Batista's OGX soars on link-up announcement
    * Petrobras up for 2nd day after diesel price rise

    By Danielle Assalve
    SAO PAULO, March 7 (Reuters) - Brazilian stocks rose sharply
for the second straight day on Thursday after billionaire Eike
Batista turned to financier Andre Esteves' investment bank BTG
Pactual for advice and credit, sending shares in his companies
soaring.
    Batista unveiled a non-exclusive partnership with BTG
Pactual Group late on Wednesday and his flagship OGX
Petroleo e Gas Participacoes SA led gains on the
Bovespa index, which was up 1.56 percent to 58,846.81
points.  
    OGX' share price rocketed, ending the day up 16.44 percent,
having reached an intra-day gain of 27.7 percent. 
    "This agreement is strategically interesting," said Guido
Chagas, a senior partner of Humaita Investimentos. "He (Eike)
got BTG's seal of approval and will now have the money to
finance the company's key projects."
    But OGX was not the day's only winner. Port and real estate
group LLX Logistica SA shot up 10.41 percent and
mining company MMX Mineracao e Metalicos SA gained
17.04 percent.
    Also helping the Bovespa, common shares of state-led oil
company Petrobras rose sharply for a second day, up
4.99 percent. Investors believe the plan announced late on
Monday to raise the price of diesel, Brazil's most-used motor
fuel, will help Petrobras limit losses in its refining division.
    Credit Suisse also raised its outlook on Petrobras' American
Depository Receipts (ADR) to outperform from neutral on
Thursday.  
    In Mexico, the IPC fell 0.43 percent to 43,968.60
points, as banking group Banorte lost 2.18
percent, while Chile's IPSA shed 0.52 percent to
4,495.71 points. 
    Latin America's key stock indexes at 2153 GMT:
    
 Stock indexes                                      % change
                              Latest              
                                                            
 MSCI LatAm                          3,892.77           0.36
                                                  
 Brazil Bovespa                     58,846.81           1.56
                                                  
 Mexico IPC                         43,968.60          -0.43
                                                  
 Chile IPSA                          4,495.71          -0.52
                                                  
 Chile IGPA                         21,991.41          -0.49
                                                  
 Argentina MerVal                    3,328.19           2.92
                                                  
 Colombia IGBC                      14,466.61          -0.49
                                                  
 Peru IGRA                          20,364.56          -0.95
                                                  
 Venezuela IBC                     617,816.50          -0.11

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