EMERGING MARKETS-Brazil stocks slip as OGX offsets Itau

Reuters

* Brazil Bovespa falls 1.09 percent, Mexico IPC up 0.34percent

SAO PAULO, Oct 29 (Reuters) - Brazilian stocks fell for thefourth session in five on Tuesday as investor concerns over apossible bankruptcy filing by heavily weighted oil firm OGXoffset a jump in shares of lender Itau Unibanco.

Mexico's IPC index rallied for a third straightsession, while Chile's bourse moved slightly lower.

Brazil's benchmark Bovespa stock index fell 1.09percent a day after rising the most in nearly two weeks. Still,the index may finish October with its best monthly performanceof the year.

Shares of troubled Brazilian oil producer OGX Petróleo e GasParticipações SA fell as much as 24 percent,contributing most to the index's decline after the company saidtalks with holders of $3.6 billion in its bonds ended withoutagreement. The company could file for bankruptcy protection asearly as Tuesday, three sources with direct knowledge of thesituation told Reuters on Monday.

The index was pressured further by shares of state-run rivalPetroleo Brasileiro SA, known as Petrobras. Analystssaid the 1.2 percent drop in the shares was driven mostly byprofit-taking after the stock jumped the most in seven and ahalf months on Monday, fueled by news that the company would re-examine its pricing policy.

Shares of Itaú Unibanco Holding SA, Brazil'slargest bank by market value, jumped 2.6 percent, reaching theirhighest in at least two years, after the company reported muchhigher-than-expected earnings for the third quarter.

Mexico's IPC index touched its highest level in overthree weeks, adding 0.34 percent to 41,262.11.

Shares of broadcaster Grupo Televisa rose 0.95percent, contributing most to the index's gains, whiletelecommunications firm America Movil, controlled bybillionaire Carlos Slim, rose 0.3 percent.

Chemical maker Mexichem dropped 1 percent afterthe company reported a quarterly loss on Monday.

Chile's IPSA index edged 0.11 percent lower as a 1.3percent decline in shares of pulp and paper company EmpresasCMPC offset a 0.5 percent rise in retailer Falabella.

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