June 5 (Bloomberg) -- The Ibovespa fell to an 11-month low as steelmaker Usinas Siderurgicas de Minas Gerais SA led commodity producers down as concern that the Federal Reserve will reduce stimulus dimmed the outlook for Brazil’s exports.
Iron-ore producer Vale SA fell for the first time in three days, contributing the most to the benchmark’s decline. Crop producer Vanguarda Agro SA led gains on the gauge.
The Ibovespa lost 2.3 percent to 52,798.63 at the close of trading in Sao Paulo. Sixty-three stocks fell while eight rose. The gauge’s 90-day volatility, a measure of price swings, rose to the highest since January. The real weakened 0.1 percent to 2.1277 per dollar. Global stocks fell, with the MSCI World Index slipping 1.5 percent, as investors weighed comments by Fed policy makers on when to scale back the central bank’s bond-buying program.
“There’s an expectation that they’ll pull back stimulus if the economy improves,” Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora. “Commodity-linked stocks are falling after recent gains. It’s been very volatile.”
Global stocks fell as Fed Bank of Dallas President Richard Fisher called for a reduction in the central bank’s bond purchases, which economists from Goldman Sachs Group Inc. and Deutsche Bank AG predict may be curbed from September.
Voting shares of Usiminas sank 6.1 percent to 8.80 reais, snapping a two-day advance. Vale lost 3.7 percent to 29.17 reais.
Brazil scrapped a 6 percent tax rate on foreign investors who buy Brazilian bonds in the domestic market effective today, Finance Minister Guido Mantega said yesterday.
Vanguarda gained 3.2 percent to 3.87 reais.
Smiles SA, the frequent-flier unit of Gol Linhas Aereas Inteligentes SA, rose 1.8 percent to 25.45 reais. Analysts at Bradesco BBI and Deutsche Bank AG initiated coverage of the stock with the equivalent of buy.
Brazil’s benchmark gauge has slumped 13 percent in 2013, underperforming emerging markets including China, Russia and India, amid concern quickening inflation will curb the nation’s economic expansion.
The Ibovespa trades at 12.6 times analyst earnings estimates for the next four quarters, compared with a multiple of 10.6 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 8.17 billion reais today, data compiled by Bloomberg shows. That compares with a daily average of 7.67 billion reais this year through May 29, according to data compiled by the exchange.
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