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Ibovespa Futures Fall as Materials Drop on Global Growth Outlook

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June 13 (Bloomberg) -- Ibovespa futures fell, a sign the gauge may drop a fifth day, as commodities tumbled after the World Bank cut its growth forecast for the year, dimming the outlook for Brazilian raw-materials exporters.

Cia Paranaense de Energia may move after the power utility said it didn’t make an offer for bankrupt Rede Empresas de Energia Eletrica SA’s assets. Morgan Stanley recommended buying papermakers Suzano Papel e Celulose SA and Fibria Celulose SA.

Ibovespa futures contracts expiring in August declined 0.5 percent to 49,020 at 9:03 a.m. in Sao Paulo. The real strengthened 0.7 percent to 2.1417 per dollar. The Standard & Poor’s GSCI index of 24 raw materials retreated 0.6 percent after the World Bank reduced its 2013 growth estimate to 2.2 percent from a projection of 2.4 percent in January amid concern central banks may pare stimulus.

The Ibovespa has slumped 22 percent from this year’s peak in January on speculation accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. Brazil’s benchmark equity gauge trades at 11.7 times analysts’ earnings estimates for the next four quarters.

Trading volume for stocks in Sao Paulo was 23.6 billion reais ($10.9 billion) yesterday, which compares with a daily average of 7.9 billion reais this year through June 12, according to data compiled by the exchange.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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