SAC Fund Manager Steinberg Guilty in Insider-Trading Case
Bovespa Index Falls as PDG Realty Spurs Homebuilders Drop
The Bovespa index fell from a one- week high as homebuilders declined after PDG Realty SA Empreendimentos & Participacoes (PDGR3) posted an unexpected fourth- quarter loss.
OGX Petroleo & Gas Participacoes SA (OGXP3), the oil company controlled by billionaire Eike Batista, dropped after saying it will cut the volume estimates for its only producing field after missing output targets. Education company Estacio Participacoes SA gained after it reported fourth-quarter revenue that exceeded analysts’ estimates.
The Bovespa declined 0.9 percent to 55,167.76 at 10:36 a.m. in Sao Paulo. Fifty-seven sank on the gauge while 11 advanced. The real weakened 0.3 percent to 2.0233 per dollar.
“Homebuilders are clearly going through a rough patch,” Fernando Goes, an analyst at Sao Paulo-based brokerage Clear Corretora, said in a phone interview. “Investors have waited for quite some time for them to show some improvement, but so far it hasn’t happened.”
PDG Realty, Brazil’s largest homebuilder by sales, tumbled 1.3 percent to 3.01 reais. The company posted an adjusted net loss of 1.79 billion reais, according to a statement yesterday. Analysts had forecast net income of 41.9 million reais, data compiled by Bloomberg show. The BM&FBovespa Real Estate Index fell 0.5 percent.
OGX, the worst-performing stock this year on the Bovespa index, dropped 1.3 percent to 2.27 reais after earlier tumbling as much as 2.6 percent.
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