Ibovespa Futures Fall as Drop in Commodities Dims Export Outlook

Ibovespa futures dropped as emerging-market stocks tumbled and a retreat in commodities dimmed the outlook for Brazil’s producers of raw materials.

For-profit college Estacio Participacoes SA (ESTC3) may move as Brazil’s Ministry of Education published rules for students to transfer from Gama Filho and UniverCidade, whose operating licenses were canceled. BM&FBovespa SA (BVMF3), the operator of Brazil’s securities exchange, may be active as Citigroup Inc. initiated coverage of the stock with a buy recommendation.

Ibovespa futures contracts expiring in February dropped 1.1 percent to 47,995 at 9:17 a.m. in Sao Paulo. The real depreciated 1.2 percent to 2.4283 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials declined 0.4 percent, the most in two weeks.

“Commodity producers have a big weighting on the Ibovespa, so the market suffers a lot when the prices in the international market are falling,” Raphael Figueredo, an analyst at the brokerage firm Clear Corretora in Sao Paulo, said by phone.

The Ibovespa has tumbled 14 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year and concern mounted that higher government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo was 6.81 billion reais yesterday, which compares with a daily average of 6.24 billion reais this month, according to data from the exchange.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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