Ibovespa Futures Drop as Commodities Decline Saps Export Outlook

Ibovespa futures fell, after the equity benchmark rose for a sixth straight session yesterday, as lower commodities prices dimmed the outlook for Brazilian raw-material exporters.

Cia. Siderurgica Nacional SA and Usinas Siderurgicas de Minas Gerais SA may move after both steelmakers were rated sell in new coverage at UBS AG. Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest food retailer, may be active after posting earnings that beating analysts’ estimates.

Ibovespa futures contracts expiring in December fell 0.7 percent to 54,480 at 9:19 a.m. in Sao Paulo. The real strengthened 0.6 percent to 2.1680 per dollar. The Standard & Poor’s GSCI index of 24 raw materials declined 0.3 percent as metals and crude dropped.

Brazil’s main equity index rose yesterday to the highest since May after better-than-forecast earnings from car-rental company Localiza Rent a Car SA spurred optimism on the outlook for corporate profits.

The Ibovespa 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 13 percent in dollar terms this year, compared with a decline of 2.1 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo yesterday was 14.7 billion reais, compared with a daily average of 7.57 billion reais this year through Oct. 15, according to data compiled by the exchange.

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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