Bovespa-Futures Gain as China Data Boost Export Outlook

The Bovespa index snapped a three- day rally as a report showing retail sales unexpectedly dropped in February rekindled concern that Brazil’s economic recovery will falter.

Homebuilder MRV Engenharia & Participacoes SA (MRVE3) led losses by companies that sell in the local market. Cia. Hering (HGTX3) was the worst performer among retailers. Oil services provider Lupatech SA (LUPA3) tumbled after missing a $6.79 million bond payment.

The Bovespa fell 0.9 percent to 55,683.33 at 10:35 a.m. in Sao Paulo. Fifty-nine stocks dropped on the gauge while six advanced. The real climbed 0.1 percent to 1.9735 per dollar.

Retail sales data signaled that Brazil’s economic growth slowed in the first quarter and added to concern that the recovery is still sluggish, according to Roman Goossens, an economist at Banco Bradesco SA’s brokerage unit. “In the last few months, retail sales seem to have been hit by high inflation,” he wrote in a report today.

Brazil’s retail sales fell 0.2 percent in February from a year earlier, the national statistics agency reported today. The median forecast of 27 analysts surveyed by Bloomberg was for a 3.5 percent increase. Sales declined 0.4 percent from the previous month.

The Getulio Vargas Foundation also reported today that its IGP-M inflation index of wholesale, construction and consumer prices rose 0.42 percent from March 21 to March 31, the fastest pace since a 0.50 percent increase in late November.

MRV fell 3 percent to 9.49 reais. Hering lost 1.6 percent to 38.26 reais. Lupatech sank 6.3 percent to 1.33 reais.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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