Bovespa-index futures declined after oil company OGX Petroleo & Gas Participacoes SA was lowered to the equivalent of sell at Banco Santander SA and downgraded by analysts at three other firms.
The producer controlled by billionaire Eike Batista was recommended the equivalent of hold at JPMorgan Chase & Co., Banco Itau BBA SA and Banco Bradesco SA’s brokerage unit after reporting on March 11 a drop in oil production last month.
Bovespa-index futures contracts expiring in April retreated 0.5 percent to 58,170 at 9:09 a.m. in Sao Paulo. The real weakened 0.1 percent to 1.9659 per dollar.
Plane builder Embraer SA may be active after reporting fourth-quarter net income that trailed analysts’ forecasts. Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, may move after JPMorgan raised its recommendation to the equivalent of buy.
Oil and gas company HRT Participacoes em Petroleo SA may be active after regulators extended the company’s license to explore blocks in the Amazon’s Solimoes basin for four years.
The Bovespa has dropped 8.1 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index of shares in Brazil, Russia, India and China has slid 3.9 percent over the same period.
Brazil’s benchmark equity gauge trades at 11.8 times analysts’ earnings estimates for the next four quarters, compared with 11 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 6.41 billion reais ($3.3 billion) yesterday, which compares with a daily average of 7.62 billion reais this year through March 11, according to data compiled by the exchange.