The Bovespa index was headed for its third monthly drop as lower commodities pushed raw-material producers lower on concern the global recovery will falter.
Beef producer Marfrig Alimentos SA (MRFG3) was the worst performer on the gauge today after reporting a loss that was wider than forecast. Sugar-cane processor Cosan SA Industria e Comercio and farm company Vanguarda Agro SA (VAGR3) fell with commodities.
The Bovespa was headed for a 2.7 percent drop in March at 11:12 a.m. in Sao Paulo and was little changed at 55,921.04 for the day. Forty-six stocks declined today while 22 advanced. Brazil’s real was little changed at 2.0129 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 0.1 percent after a report showed jobless claims in the U.S. increased more than forecast.
“The Bovespa is now reflecting the concern about the outlook for the world economy,” Luciano Rostagno, the chief strategist at Banco WestLB do Brasil SA, said in a telephone interview from Sao Paulo. “Economic data that came out in the U.S. today were a bit worse than expected, and that’s weighing on the market.”
Marfrig sank 6.1 percent to 8.36 reais. The company posted a net loss of 284.2 million reais in the fourth quarter, compared with an average estimate for an adjusted loss of 39.9 million reais among nine analysts surveyed by Bloomberg.
Cosan fell 2.9 percent to 44.82 reais.
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