* Brazil Bovespa up 0.15 pct, Mexico IPC flat
MEXICO CITY, Oct 31 (Reuters) - Brazil's benchmark Bovespastock index edged up on Thursday, the day before heavilyweighted oil firm OGX was set to be removed from the index afterthe company filed for bankruptcy protection.
Mexico's IPC index was flat while Chile's bourse was closed for a local holiday.
The Bovespa rose 0.15 percent to 54,256.20 pointsto end October up nearly 4 percent.
Shares of OGX Petroleo e Gas Participacoes SA dropped 23.53 percent, the day after the company controlled byformer billionaire Eike Batista filed for bankruptcy protection.
Brazil exchange operator BM&F Bovespa said late on Wednesdaythat it would remove OGX from the Bovespa after Thursday'ssession but that the shares would continue to trade.
OGX's relatively heavy weighting in the index has meant thateven small changes in the stock's price cause the Bovespa toswing widely, and its removal should lessen volatility, analystssaid.
Shares of state-run oil company Petroleo Brasileiro SA rose 2.41 percent, touching their highest level innearly six months as investors continued to cheer a new fuelpricing proposal from the company, which could boostprofitability.
The company currently imports gasoline to satisfy localdemand while selling it at a loss at the government's insistenceas a means of controlling inflation.
Shares of steelmaker Gerdau SA rose 4.68 percentafter the company reported better-than-expected third-quarterearnings on Thursday.
Mexico's IPC index, which ended the month down 2.1percent, closed flat.
Mexico's Senate on Thursday approved a plan to slap a 1peso-per-liter tax on sugary drinks and an 8 percent tax on junkfood, before sending the bill back to the lower house ofCongress for final approval, expected later in the day.
Shares of Coca-Cola Femsa, Coke's largestbottler in Latin America, lost 1.28 percent. Bread maker Bimbo, which fell more than 2 percent in morning trading,closed the day up 0.6 percent.
- Investment & Company Information