Ibovespa futures declined as lower metal prices dimmed the outlook for Brazilian raw-material producers.
MMX Mineracao & Metalicos SA, the mining company controlled by the billionaire Eike Batista, may move after it suspended iron-ore output at one of its mines for six months to reduce spending. Fibria Celulose SA and Suzano Papel & Celulose SA may be active after Banco Itau BBA SA raised both pulp producers to the equivalent of buy.
Ibovespa futures contracts expiring in August dropped 1.3 percent to 44,905 at 9:55 a.m. in Sao Paulo after earlier rising. Brazil’s main equity gauge has slumped 25 percent this year, the worst performance after Peru’s Lima General index among 94 stock benchmarks tracked by Bloomberg. The real weakened 0.7 percent to 2.2653 per dollar today. The Bloomberg Base Metals 3-Month Price Commodity Index sank 1.4 percent.
The Ibovespa trades at 11.3 times analysts’ earnings estimates for the next four quarters, compared with 9.9 for the MSCI Emerging Markets Index of 21 developing nations’ equities. Trading volume for stocks in Sao Paulo was 4.6 billion reais yesterday, when U.S. markets were closed for the Independence Day holiday. That compared with a daily average of 7.91 billion reais this year through July 3, according to data compiled by the exchange.
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