EMERGING MARKETS-Latam stocks down for week, vulnerable to further drop

Reuters

MEXICO CITY, Sept 27 (Reuters) - Mexican stocks fell sharply

on Friday as investors cashed in on a recent rally, and after

finishing lower for the week, Latin American equities could be

susceptible to a more losses next week as U.S. lawmakers

struggle to avert a government shutdown.

Mexico's IPC stock index failed for the third time in two

weeks to break past the 42,000 level, while Brazilian stocks

have slumped back from their highest since May during the last

two weeks.

* The region's stocks could suffer next weak amid worries

that U.S. lawmakers could fail to reach the deals needed to keep

the government running beyond Sept. 30 and avoid a debt default,

which could spook investors and undermine global growth.

* Brazil's Bovespa index dipped 0.08 percent on

Friday and notched a decline of about 0.7 percent for the week.

* Santander Brasil rose 7.64 percent after its

Spanish parent announced a one-off dividend payment of 6 billion

reais ($2.7 billion) to shareholders in its Brazilian unit.

* Shares in troubled oil producer OGX, which is

controlled by billionaire Eike Batista, fell 9.7 percent to an

all-time low. The stock is down about 99 percent from a 2010

high as confidence in its projects evaporated.

* Mexico's IPC stock index shed 1.03 percent on

Friday, dragging it down 1 percent on the week.

* Mexico's Alfa dipped 0.46 percent after

Bloomberg reported the conglomerate is planning a public

offering of its food unit Sigma Alimentos.

* Shares in America Movil, controlled by

billionaire Carlos Slim, lost 0.53 percent. The company said it

might go ahead with an offer next month for Dutch telecom KPN.

* Severe flooding that hit Mexico this month is likely to

knock off about 0.1 percentage point from growth in 2013,

Finance Minister Luis Videgaray said on Friday.

Latin America's key stock indexes at 2050 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,337.46 -0.98 -12.12

Brazil Bovespa 53,738.92 -0.08 -11.83

Mexico IPC 40,903.65 -1.03 -6.41

Chile IPSA 3,872.91 -0.6 -9.96

Chile IGPA 19,028.29 -0.5 -9.69

Argentina MerVal 4,730.14 -2.24 65.72

Colombia IGBC 14,116.16 0.14 -4.08

Peru IGRA 15,945.97 0.89 -22.70

Venezuela IBC 1,799,886.43 0.31 281.79

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