Petrobras Stock on Loan Climbs; Shares Slide on Crude
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Borrowed stock in Brazilian state-controlled oil producer Petroleo Brasileiro SA rose, indicating that investors may be seeking to profit from falling crude prices. The stock plunged 7.6 percent today, the most since December 2008.
Investors had borrowed 178.8 million shares as of Aug. 5, or 3.2 percent of the total outstanding, according to data compiled by Bloomberg and Brazil’s clearing and depository corporation, known as CBLC. That’s the highest level since Bloomberg began tracking the data in October last year. Investors in Brazil borrow stock to use for short-selling, hedging and tax purposes. In a short sale, traders bet on declines by selling a borrowed security in hopes of buying it back later at a lower price.