The shares dropped 4.4 percent to 52.70 reais at the close of trading in Sao Paulo, the biggest one-day slump since Oct. 23. Trading volume was 3.7 times the three-month daily average, according to data compiled by Bloomberg. It was the worst performer on Brazil’s benchmark Ibovespa (IBOV) index, which added 0.7 percent.
Lawmaker Aloysio Nunes Ferreira of Sao Paulo, senate leader of Brazil’s biggest opposition party, proposed on May 15 a bill that would limit charges by card processors and allows retailers to offer discounts to clients who pay with cash instead of plastic.
“We believe any changes proposed from such bill are remote in the short- to medium-term,” Mario Pierry, an analyst at Deutsche Bank AG, wrote in a note to clients today. “Nonetheless, it reinforces our views that regulatory risks in the industry are high and should not be ignored.”
The proposal is awaiting the designation of a sponsor who can present the bill to the committee responsible for economic matters, according to the senator’s website.
Today’s decline pared Cielo’s advance this year to 11 percent, compared with an 9.5 percent drop in the Ibovespa.
To contact the reporter on this story: Denyse Godoy in Sao Paulo at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org