Ibovespa Futures Decline as OGX, PDG Realty Earnings Disappoint

Ibovespa futures dropped as oil company OGX Petroleo & Gas Participacoes SA and homebuilder PDG Realty SA Empreendimentos & Participacoes posted first-quarter losses that were wider than expected.

Farm company SLC Agricola SA may move after Bank of America Corp. raised its recommendation to the equivalent of hold. Retailer Lojas Americanas SA may be active after posting first-quarter profit that exceeded analysts’ forecasts.

Ibovespa futures contracts expiring in June dropped 0.5 percent to 54,990 9:36 a.m. in Sao Paulo. The real weakened 0.3 percent to 2.0191 per dollar.

OGX posted an adjusted net loss of 798.8 million reais ($396.1 million) in the first quarter, more than the 351 million reais average of three estimates in a Bloomberg survey. The adjusted net loss for PDG was 1.79 billion reais, which compares with an average estimate for net income of 41.9 million reais.

The Ibovespa has declined 9 percent this year, the worst performer after Colombia’s IGBC index among 19 major emerging markets, data compiled by Bloomberg show. Brazil’s main equity gauge trades at 12.3 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

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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