EMERGING MARKETS-Brazil stocks fall on OGX, Mexico holds gains


01/07/2012 09:08 AST  Reuters

A massive sell-off in shares of oil firm OGX drove Brazil's Bovespa stock down on Th ursday while Mexican shares rallied on bets Sunday's presidential election will usher in quick reforms.

OGX Petroleo, owned by Brazilian billionaire Eike Batista, led losses on the Sao Paulo stock exchange as it extended Wednesday's 25 percent slump. But hopes for more growth-spurring interest rate cuts in Brazil cushioned the fall in the benchmark Bovespa index.

Mexico's IPC was the only major Latin American stock index to hold its gains as investors bet the opposition Institutional Revolutionary party, led by front-runner Enrique Pena Nieto, will sweep Sunday's election.

"What happens on Sunday is helping shares. It's practically a fact that Enrique Pena Nieto is the winner," said Gerardo Sienra, who is in equity sales at Intercam in Mexico City.

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