Miner Vale SA (VALE5) followed iron-ore prices lower, making the MSCI Brazil/Materials index the worst performer among 10 industry groups. Frequent-flier program Smiles SA sank after second-quarter net income missed analysts estimates. Utility Cia Paranaense de Energia snapped three days of losses.
The Ibovespa gained 0.1 percent to 55,902.87 at the close of trading in Sao Paulo, paring a weekly drop to 3.3 percent.
“Bad results from some companies are weighing on the market today,” Pedro Galdi, the chief analyst at brokerage firm SLW Corretora, said by phone from Sao Paulo. “This should be a very volatile session.”
PDG reported an adjusted net loss of 120.8 million reais ($53.5 million) for the second quarter, compared with the average estimate of a loss of 13 million reais from three analysts. The shares fell 3.4 percent to 1.40 reais.
Iron ore for immediate delivery fell 40 cents, or 0.4 percent, to $95.20 a ton, according to a price index compiled by The Steel Index Ltd. Vale slumped 2 percent to 28.54 reais.
Smiles dropped 2.9 percent to 38.37 reais, the lowest in two weeks. Copel, as Cia. Paranaense is known, jumped 4 percent to 36.60 reais.
JBS climbed 5.3 percent to 8.79 reais, the highest since January. Moody’s Investors Service revised the outlook on the company’s credit rating to stable from negative, according to a report today.
The Ibovespa has rallied 24 percent from this year’s low on March 14 as oil producer Petroleo Brasileiro SA jumped on speculation that President Dilma Rousseff will lose her re-election bid in October.
Trading volume of equities in Sao Paulo was 6.3 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.5 billion reais this year, according to data from the exchange.
To contact the reporter on this story: Denyse Godoy in Sao Paulo at firstname.lastname@example.org
To contact the editors responsible for this story: Brendan Walsh at email@example.com Rita Nazareth, Dennis Fitzgerald