Most Brazilian stocks fell as Cia. Hering led retailers lower after economists reduced their growth forecasts for the country.
Hypermarcas SA, a maker of consumer products from diapers to generic drugs, was the worst performer on the MSCI Brazil/Consumer Staples index, which dropped to a four-month low. Prumo Logistica SA, the port developer formerly known as LLX, fell the most since July, while OSX Brasil SA, the shipbuilder founded by Eike Batista, jumped the most on record.
The Ibovespa was little changed at 50,973.62 at the close of trading in Sao Paulo, with 44 of its 72 members finishing lower. Brazil’s benchmark stock gauge declined 27 percent in dollar terms in 2013, the worst performance among the 20 biggest equity indexes tracked by Bloomberg, as policy makers boosted borrowing costs to curb inflation. The real lost 0.1 percent to 2.3780 per U.S. dollar at 5:20 p.m. local time.
“Investors were very disappointed with what happened with the Brazilian economy in 2013, and the Ibovespa reflected that,” Alexandre Ghirghi, a portfolio manager at Metodo Investimentos in Sao Paulo, said in a telephone interview. “For equities to rebound, we’ll have to see an actual improvement in the economy. And as of now, we don’t see it.”
Brazil’s gross domestic product will expand 1.95 percent this year, down from a 2 percent median forecast a week earlier, a central bank survey of about 100 economists showed today. Latin America’s largest economy expanded 2.28 percent in 2013, according to the survey. The national statistics agency is scheduled to release last year’s growth figures in February.
Hypermarcas declined 2.7 percent to 17.32 reais. Hering sank 2.7 percent to 29.18 reais. Cosmetics seller Natura Cosmeticos SA fell 2.1 percent to 39.96 reais.
Real estate brokerage LPS Brasil Consultoria de Imoveis SA tumbled 3.7 percent to 14.16 reais, the worst performance on the BM&FBovespa Real Estate Index, which slipped 1.2 percent. Developer BR Properties SA fell 1.7 percent to 17.86 reais.
Prumo plunged 15 percent to 1.11 reais. OSX jumped 43 percent to 83 centavos.
Education company Estacio Participacoes SA advanced 0.3 percent to 19.69 reais, and health-insurance broker Qualicorp SA climbed 1.3 percent to 22.11 reais. Both stocks were included on the Ibovespa today after exchange operator BM&FBovespa SA started weighting the index’s members based mainly on their market value instead of trading volume.
“Being included in the Ibovespa is positive, especially for companies that aren’t so well known in the market, such as Qualicorp,” Felipe Rocha, an analyst at brokerage firm Omar Camargo Investimentos, said by telephone from Curitiba, Brazil. “Fund managers who use the Ibovespa as a benchmark will have to add it to their portfolios, and other investors may start paying closer attention to the company.”
Trading volume of stocks in Sao Paulo was 6 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.42 billion reais in 2013, according to data available from the exchange.