The Bovespa index fell to a two-month low as iron-ore mining company Vale SA slumped on concern that the contraction in the euro region and Japan will sap demand for Brazil’s exports.
Lender Banco do Estado do Rio Grande do Sul SA slid to the lowest in a month after reporting profit that missed estimates. Vale contributed the most to the equity gauge’s decline. LLX Logistica SA rebounded from the lowest level since November, jumping the most on the benchmark.
The Bovespa slid 0.6 percent to 58,077.31 at the close of trading in Sao Paulo, its lowest level since Dec. 6. The real gained 0.4 percent to 1.9582 per dollar. The MSCI Brazil Materials index declined to a two-week low after the European Union said gross domestic product fell 0.6 percent in the fourth quarter from the previous three months, the most in almost four years.
“Commodities exporters are the most liquid stocks on the Bovespa, so they suffer more in times when investors are more sensitive, like today, because of the disappointing GDP numbers,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. Raw-materials producers account for 43 percent of the Bovespa’s weighting.
Japan’s gross domestic product contracted an annualized 0.4 percent, following a revised 3.8 percent drop in the previous quarter, the Cabinet Office said in Tokyo today. The median forecast of 32 economists surveyed by Bloomberg was for 0.4 percent growth.
Vale fell 1.8 percent to 36.75 reais. Pulp producer Suzano Papel e Celulose SA slid 3.2 percent to 6.40 reais.
Banrisul, as Banco do Estado do Rio Grande do Sul is known, declined 2.8 percent to 16.25 reais, the lowest price since Jan. 9. LLX gained 6.8 percent to 2.04 reais, snapping a six-day losing streak.
The Bovespa climbed 7.4 percent in 2012 in its biggest yearly rally since 2009 as stimulus from central banks around the world eased economic concern and borrowing costs at a record low in Brazil boosted equity demand.
Brazil’s benchmark equity gauge trades at 10.9 times analysts’ earnings estimates for the next four quarters, compared with 10.4 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume was 5.3 billion reais in stocks in Sao Paulo today, according to data compiled by Bloomberg. That compares with a daily average of 7.5 billion reais this year, according to data compiled by the exchange.