Direcional Engenharia SA, a Brazilian homebuilder that sells to low-income families, tumbled the most in a year after booked sales sank in the second quarter.
Shares of Direcional fell 5.9 percent to 10.63 reais at the close in Sao Paulo, on trading volume that was 7.9 times the three-month daily average. MRV Engenharia e Participacoes SA, which also targets low-income consumers, declined 1.1 percent to 7.27 reais. The benchmark Ibovespa index added 0.4 percent.
Direcional didn’t start new projects that would be part of a government housing program for the country’s poorest families as it focused on finishing new houses before elections in October, according to Luiz Mauricio Garcia, an analyst at Banco Bradesco SA’s brokerage unit. Booked sales fell 77 percent from a year earlier to 127 million reais ($57.2 million).
“These preliminary results were weak,” Garcia wrote in a research note to clients.
Caixa Economica Federal, the state-controlled lender that provides financing to customers under Brazil’s My House, My Life program, is also focusing now on deliveries of the units that are under construction and reducing the speed of new projects, according to Garcia.