The Ibovespa fell for the sixth time in seven sessions as retailers including Lojas Renner SA (LREN3) sank after growth in the industrial sector trailed estimates, rekindling concern that Brazil’s economy is faltering.
Consumer stocks fell the most among 10 industry groups on the MSCI Brazil Index with cosmetics seller Natura Cosmeticos SA (NATU3) retreating to a one-week low. Phone company Oi SA rallied after it agreed to merge with Lisbon-based Portugal Telecom SGPS SA.
The Ibovespa slipped 0.1 percent to 53,100.18 at the close in Sao Paulo, with 37 stocks lower and 34 higher. The real gained 1 percent to 2.1951 per dollar at 5:30 p.m. local time. Brazil’s industrial output was unchanged in August from a month earlier, the national statistics agency said. Economists surveyed by Bloomberg had expected it to increase 0.2 percent.
“The industrial output figures today show that economic activity in Brazil is still pretty weak,” Alvaro Bandeira, a partner at Orama Asset Management, said in a telephone interview from Rio de Janeiro. “If you look just at the outlook for economic growth, it’s hard to be very optimistic about equities.”
Renner dropped 1.3 percent to 65 reais. Natura declined 2.1 percent to 49.46 reais.
Oi rallied 5.2 percent to 4.44 reais. Zeinal Bava, the former Portugal Telecom chief executive officer who became the head of Oi in June while continuing to run the Portuguese carrier’s domestic operations, will lead the enlarged company, which will be incorporated in Brazil.
Shopping mall owner Iguatemi Empresa de Shopping Centers SA advanced 2.9 percent to 25 reais. The company said in a regulatory filing late yesterday it agreed to pay 83.6 million reais to increase its stake in the Galleria shopping mall in Campinas, Brazil.
Brazil’s main equity gauge entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 19 percent in dollar terms this year, compared with a decline of 5.4 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities. Trading volume on the index’s members today was 20 percent lower than the average in the previous five days.
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