BM&FBovespa SA (BVMF3), Latin America’s biggest exchange operator, fell the most in a week after Deutsche Bank AG cut its rating on concern volumes will decline as interest rates rise and investors sour on Brazilian stocks.
The shares declined 2.9 percent to 11.56 reais at 12:56 p.m. in Sao Paulo, poised for the biggest drop on a closing basis since Aug. 19. It was the worst performance on the MSCI Brazil/Financials index, which lost 2.3 percent.
Deutsche Bank cut its rating on the stock to hold from buy and reduced its forecast for net income next year by 18 percent. Brazil’s Ibovespa is the world’s second-worst performing major stock index this year in dollar terms, and the 25 percent drop in shares of BM&FBovespa is the most among securities-exchange operators with a market capitalization of $1 billion or more, data compiled by Bloomberg show.
“We are concerned about a potential slowdown in trading volumes in light of a rising interest rate environment and increased risk aversion towards Brazil,” analysts Mario Pierry and Tito Labarta wrote in a note to clients today.
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