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EMERGING MARKETS-Brazil stocks rise on BTG-Batista deal
March 7, 2013 / 3:26 PM / 5 years ago

EMERGING MARKETS-Brazil stocks rise on BTG-Batista deal

* Brazil Bovespa up 1.77 pct, Mexico IPC near flat
    * Eike Batista's OGX on track for biggest gain since 2008
    * Petrobras up for 2nd day after announced diesel price rise

    By Danielle Assalve
    SAO PAULO, March 7 (Reuters) - Brazilian stocks rose sharply
for the second straight day on Thursday after news that
billionaire Eike Batista had turned to financier Andre Esteves'
investment bank BTG Pactual for advice and credit, sending
shares in his companies soaring.
    Batista unveiled a non-exclusive partnership with BTG
Pactual Group late on Wednesday and his flagship OGX
Petroleo e Gas Participacoes SA led gains on the
Bovespa index, which was up 1.77 percent. 
    OGX was on track for its biggest gain since 2008, while port
and real estate group LLX Logistica SA shot up 12.6
percent and mining company MMX Mineracao e Metalicos SA
 gained 15.7 percent.
    "The market took the agreement very well... now Eike has a
very well structured investment bank with lots of expertise,
it's very good for the fundamentals of his companies," said
Hamilton Alves, a senior analyst at BB Investimentos.
    Also helping the Bovespa, common shares of state-led oil
company Petrobras rose sharply for a second day, up
4.2 percent. Investors believe the plan announced late on Monday
to raise the price of diesel, Brazil's most-used motor fuel,
will help Petrobras limit losses in it refining division.
    Credit Suisse also raised its outlook on Petrobras' American
Depository Receipts (ADR) to outperform from neutral on
    Shares of drugmaker  Hypermarcas also rose 2.61
percent after the company's fourth-quarter profit beat forecasts
on strong drug sales.  
    Elsewhere in Latin America, stocks were little changed.
Mexico's IPC index slipped 0.02 percent while Chile's
Ipsa index edged down 0.03 percent.

    Latin America's key stock indexes at 1500 GMT:
 Stock indexes               daily   YTD %
                                 %  change
                  Latest    change  
 MSCI LatAm       3,900.47    0.56    2.13
 Brazil Bovespa   58,966.2    1.77   -3.26
 Mexico IPC       44,149.6   -0.02    1.02
 Chile IPSA       4,517.98   -0.03    5.04
 Chile IGPA       22,079.7   -0.09    4.79
 Argentina        3,262.51    0.89   14.30
 Colombia IGBC    14,541.6    0.03   14.81
 Peru IGRA        20,620.6    0.29   -0.04
 Venezuela IBC    617,816.   -0.11   31.05

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