Ibovespa Drops Third Day After Hering Earnings Miss; OGX Plunges

The Ibovespa fell for a third day as consumer stocks dropped after retailer Cia. Hering (HGTX3) posted third-quarter earnings that were below analysts’ estimates.

Oil company OGX Petroleo e Gas Participacoes SA tumbled after Valor Economico reported a round of talks with bondholders ended on Oct. 23 with no agreement reached. Porto Seguro SA (PSSA3) dropped after Credit Suisse Group AG cut its rating on the insurance company to the equivalent of sell.

The Ibovespa fell 0.3 percent to 54,722.13 at 10:47 a.m. in Sao Paulo. The gauge is down 1.3 percent this week. The real gained 0.9 percent to 2.1842 per dollar after Brazil’s central bank said it will hold auctions over three days next week to extend maturities on currency swaps.

“Some companies have reported earnings that weren’t very inspiring, which is weighing on the market a bit,” Luis Gustavo Pereira, a strategist at Futura Corretora brokerage, said in a phone interview from Sao Paulo. “The Ibovespa is also very vulnerable to whatever happens to OGX, and today the news is negative.”

Hering sank 3.4 percent to 31.40 reais. Porto Seguro lost 1.2 percent to 28.34 reais. OGX slumped 8.3 percent to 33 centavos.

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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