Petroleo Brasileiro SA shares account for 80 percent of assets in Brazil’s sovereign wealth fund after the state-controlled company’s $70 billion stock offering last month, O Estado de S. Paulo reported.
Of the fund’s 18 billion reais ($10.8 billion), 90 percent is invested in shares of state companies such as Petrobras, as the oil producer is known, Sao Paulo-based Estado said, citing data from the country’s securities regulator, known as CVM.
The investment signals the fund, created in 2008, may not buy dollars to contain the appreciation of the real after the government said last month it may be used to buy U.S. currency in the foreign-exchange market, Estado said. Treasury Secretary Arno Augustin said yesterday the fund hasn’t yet bought dollars.
Petrobras preferred shares have fallen 3 percent since the Sept. 23 share sale. The real has strengthened 3.4 percent in the same period.
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