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Bovespa Falls as Vale Follows Metals Lower Amid Growth Concern

The Bovespa index fell as Vale SA followed a drop in metal prices after a report showing U.S. retail sales trailed estimates rekindled concern that global growth will falter.

Gerdau SA, which generated 37 percent of its third-quarter revenue from North America, led declines by steelmakers. Diagnosticos da America SA, the medical-diagnostics firm known as Dasa, sank after saying Chief Financial Officer Jose Mauricio Mora Puliti left the company. Retailers including B2W Cia. Global do Varejo gained after a report showed sales in Brazil rose more than forecast in December.

The Bovespa sank 1 percent to 65,038.53 at the close of trading in Sao Paulo. Forty-six stocks dropped on the gauge, while 23 gained. The real weakened 0.5 percent to 1.7247 per U.S. dollar.

Sales at U.S. retailers rose 0.4 percent in January from December, Commerce Department figures showed today. The advance was half the 0.8 percent median forecast of economists surveyed by Bloomberg, reflecting an unexpected drop at auto dealers.

“Most of the U.S. data released in the past few months were good, so people were behaving like we’re now living in a dream, as if the worst was already over,” Alexandre Ghirghi, who manages about 150 million reais ($87 million) at Metodo Investimentos, said by phone from Sao Paulo. “Today’s numbers signal it’s not like that, at least not yet.”

Vale fell 1.9 percent to 42.88 reais. Gerdau dropped 2.8 percent to 17.35 reais. The Bloomberg Base Metals 3-Month Price Commodity Index declined 0.5 percent. The UBS Bloomberg CMCI Index of 27 raw materials slid 0.4 percent.

Brazil Retail Sales

The Bovespa earlier climbed as much as 0.2 percent as retailers gained after a report from the national statistics agency showed sales in Brazil rose 0.3 percent in December from November. The median estimate of 44 analysts surveyed by Bloomberg was for an increase of 0.1 percent. Sales rose 6.7 percent from a year earlier.

Online seller B2W jumped 4.6 percent to 11.30 reais. Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, climbed 0.7 percent to 74 reais after earlier gaining as much as 1.8 percent.

Dasa tumbled 4 percent to 15.50 reais, the biggest drop since Jan. 5. The company said CFO Puliti left to “pursue new challenges.” Chief Executive Officer Marcelo Noll Barboza will assume the position, according to a regulatory filing.

Banco do Brasil SA, Latin America’s biggest bank by assets, rose 4.1 percent to 27.47 reais. The lender reported adjusted net income, which excludes extraordinary events, of 3.03 billion reais in the fourth quarter, according to a regulatory filing. That beat the mean estimate of 2.6 billion reais among 11 analysts surveyed by Bloomberg.

Embraer Orders

Embraer SA, the world’s fourth-largest plane builder, climbed 1.1 percent to 12.61 reais. The company said it won an order for 10 E195 jets from Azul Linhas Aereas Brasileiras SA for a total list price of $478 million. In a separate filing, Embraer said it signed a contract with China’s Minsheng Financial Leasing Co. Ltd. for three Lineage 1000 executive jets.

The Bovespa has advanced 15 percent this year, following an 18 percent slump in 2011, buoyed by Brazil’s interest-rate cuts, signs of growth in the U.S. and renewed optimism Europe may be closer to solving its debt crisis. The gauge trades at 10.3 times analysts’ earnings estimates, which compares with a ratio of 10.5 for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.

Traders moved 7.3 billion reais in stocks in Sao Paulo today, data compiled by Bloomberg show. That compares with a daily average of 6.59 billion reais this year through Feb. 7, according to data from the exchange.

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