Brazilian Stocks Drop as Petrobras, Steelmakers Decline

Brazil’s Bovespa stock index sank, paring a fourth week of gains, after Petroleo Brasileiro SA dropped and Bank of America Corp. said steel prices will likely fall in the country.

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, declined after selling shares in a $70 billion offering at a 2 percent discount to yesterday’s closing price, smaller than some analysts estimated. Gerdau SA, Brazil’s biggest steelmaker, dropped 4.6 percent after Bank of America cut its rating on the stock, citing a “weak” price outlook. Declines in the Bovespa were limited by a rally in Vale SA, the world’s biggest iron ore producer, after it approved a stock buyback of as much as $2 billion and proposed an extraordinary dividend.