SAO PAULO--Brazilian stocks posted gains Tuesday helped by news
Brazil's government will lower taxes on sugarcane and petrochemical
industries to boost the competitiveness of its exports.
Brazil's benchmark Ibovespa stock index closed 1.1% up, at
54,884.
The country will "neutralize" the so-called PIS/Cofins social
security tax on ethanol producers and petrochemical companies as
the U.S. is expanding its shale gas production, undercutting global
prices, Brazil's Finance Minister Guido Mantega said Tuesday.
Shares of Braskem SA, Brazil's largest chemical company, soared
after the news, leading the Ibovespa index gains Tuesday. Braskem
ended up 8.3%, at 16.18 Brazilian reais ($8.09). Shares of Cosan
S.A. Industria e Comercio, a large producer of bioethanol and
sugar, finished up 3.2%, at BRL46.07.
Tuesday's session was again marked by intense volatility of
shares of oil company OGX Petroleo e Gas Participacoes S.A, which
is controlled by Brazilian billionaire Eike Batista. After soaring
more than 18% Monday and posting gains for most of the session
Tuesday, OGX finished the session down 4.3%, at BRL1.54.
Lukoil's president Vagit Alekperov has denied the company is
involved in negotiations to buy the Brazilian firm, according to
Russian newswires.
Folha de S.Paulo reported Sunday that billionaire Eike Batista
is in talks to sell a 40% stake in the oil producer to Russia's
Lukoil. OGX is also in talks to sell a 40% stake in its Tubarao
Martelo field to Malaysia's Petroliam Nasional, or Petronas, the
newspaper said. OGX denied it.
"OGX is not longer trading on fundamentals," said Bruno
Goncalves, a stock analyst at Brazil's brokerage Alpes. "The market
now expects that OGX will, at least, announce a farm-out, likely in
the first half of the year," Mr. Goncalves added.
Investors are trying to recalculate what would be right price
for OGX if it were to sell a stake to a competitor, said Joao Pedro
Brugger, a stock analyst at Brazil's brokerage Leme
Investimentos.
OGX, the flagship company of Mr. Batista's EBX holding,
triggered a confidence crisis in the group's ability to fund its
massive infrastructure investments after reporting production
levels well below expectations.
Other shares in the "X" empire also finished lower on Tuesday.
Shares of logistic firm LLX Logistica SA were down 3.6%, at
BRL1.90. The group's mining firm MMX Mineracao e Metalicos lost
4.8% to BRL1.98.
UnitedHealth Group Inc., the biggest U.S. health insurer, and
Brazil's Amil Participacoes, the country's largest health insurer
as well as an operator of hospitals and clinics, finalized Tuesday
the tender offer for the acquisition of the remaining Amil's
shares. The offer amounted to BRL2.9 billion, according to Brazil's
stock exchange BM&FBovespa. United Health bought 90% of Amil in
2012 for $4.3 billion.
Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires