EMERGING MARKETS-Brazil stocks slip as OGX fall offsets gain in Itau

Reuters

* Brazil Bovespa falls 0.97 percent, Mexico IPC up 0.39

percent

SAO PAULO, Oct 29 (Reuters) - Brazilian stocks fell for the

fourth session in five on Tuesday as shares of oil company OGX

plunged on investor concerns over a possible bankruptcy filing,

offsetting a jump in shares of lender Itau Unibanco.

Mexico's IPC index rallied for a third straight

session, while Chile's bourse fell slightly.

Brazil's benchmark Bovespa stock index fell 0.97

percent a day after rising the most in nearly two weeks. Still,

the index may finish October with its best monthly performance

of the year.

Shares of troubled Brazilian oil producer OGX Petróleo e Gas

Participações SA tumbled 20.69 percent, contributing

the most to the index's decline, after the company said talks

with holders of $3.6 billion in its bonds ended without

agreement. The company is preparing to file for bankruptcy

protection, sources have told Reuters.

Shares of state-run rival Petroleo Brasileiro SA,

known as Petrobras, also fell, shedding 0.96 percent. Analysts

said the drop was driven mostly by profit-taking a day after the

stock jumped the most in seven and a half months, fueled by news

that the company would re-examine its pricing policy.

Shares of Itaú Unibanco Holding SA, Brazil's

largest bank by market value, jumped 3.65 percent, reaching

their highest level in at least two years, after the company

reported much higher-than-expected earnings for the third

quarter.

Mexico's IPC index touched its highest level in over

three weeks, adding 0.39 percent to 41,284.38 points.

Shares of retailer and bottler Femsa rose 1.48

percent, contributing the most to the index's gains, while

telecommunications firm America Movil, controlled by

billionaire Carlos Slim, rose 0.87 percent.

Chemical maker Mexichem dropped 1.29 percent

after the company reported a quarterly loss on Monday.

Chile's IPSA index edged 0.35 percent lower despite

a 1.24 percent rise in retailer Falabella.

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