Ibovespa Futures Fall as OGX Ends Bondholder Talks Without Deal

Ibovespa futures dropped as OGX Petroleo e Gas Participacoes SA ended talks with bondholders without an agreement.

State-run Petroleo Brasileiro SA (PETR4) may move after people with knowledge of the matter who asked not to be identified said China National Petroleum Corp. was close to an agreement to buy its assets in Peru for more than $2 billion. Itau Unibanco Holding SA (ITUB4), Latin America’s biggest bank by market value, may move after posting third-quarter earnings that exceeded analysts’ estimates.

Ibovespa futures contracts expiring in December sank 0.7 percent to 54,330 at 9:17 a.m. in Sao Paulo. The real weakened 0.2 percent to 2.1830 per dollar.

OGX, the producer founded by former billionaire Eike Batista, missed a $45 million payment on Oct. 1, prompting Standard & Poor’s to assign a default rating to $1 billion of bonds. The company said in a statement today that it had been negotiating for months with holders of securities due in 2018 and 2022 and no accord was reached.

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 15 percent in dollar terms this year, compared with a decline of 1.8 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.79 billion reais ($3.1 billion) yesterday, compared with a daily average of 7.61 billion reais this year through Oct. 22, 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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