EMERGING MARKETS-Latam stocks steady on U.S. deal, OGX boosts Bovespa

Reuters

RIO DE JANEIRO, Oct 16 (Reuters) - Key Latin American stock

indexes held steady on Wednesday as U.S. lawmakers appeared

close to passing a deal to avert a potentially damaging debt

default.

Brazil's Bovespa index rallied more than 2 percent,

however, supported by a jump of over 40 percent in shares of OGX

Petróleo e Gás Participações SA. The oil company,

founded by Brazilian tycoon Eike Batista, posted sharp gains for

the second consecutive day on hopes it may receive a cash

injection as part of a restructuring plan..

OGX's shares traded at 0.48 real after rising nearly 50

percent on Tuesday as investors hoped that Batista could cede

control of his company during the restructuring process.

"Yesterday, the Bovespa's rise was based on OGX's

performance and that is happening again today," said Guilherme

Sand, a partner at Zenith Asset Management in Sao Paulo.

Other Latin American bourses had a more modest performance

as investors awaited the passing of a deal in both houses of the

U.S. Congress to lift the U.S. debt ceiling and end the

government shutdown.

Early in the afternoon, Republican and Democratic leaders in

the U.S. Senate announced a bipartisan deal to raise the U.S.

debt limit and end the government shutdown.

But even if the Senate and House of Representatives manage

to seal the deal before Thursday - when the Treasury says it

will exhaust its borrowing authority - it will be a temporary

solution that sets up the prospect of another showdown early

next year.

Reflecting investors' cautious tone, Mexico's benchmark IPC

index gained a modest 0.4 percent, supported by a 3

percent rise in shares of telecom company America Movil

.

America Movil's shares gained after the company announced it

would not proceed with a plan to boost its stake in Dutch

telecom KPN.

Latin America's key stock indexes at 1716 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,474.12 1.22 -9.63

Brazil Bovespa 56,363.35 2.51 -7.53

Mexico IPC 40,362.84 0.36 -7.65

Chile IPSA 3,851.27 -0.05 -10.46

Chile IGPA 18,974.07 -0.01 -9.95

Argentina MerVal 5,168.13 -2.21 81.07

Colombia IGBC 14,306.05 0.35 -2.78

Peru IGRA 15,541.92 0.25 -24.66

Venezuela IBC 1,881,126.70 -0.37 299.02

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