Ibovespa Drops With Gafisa as Brazil Retail Sales Miss Forecasts

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The Ibovespa fell for the first time in four days as data showing an unexpected drop in Brazil’s retail sales damped prospects for companies selling in the local market.

Gafisa SA and PDG Realty SA led real-estate stocks lower. Beef producer JBS SA contributed most to the benchmark index’s decline. Natura Cosmeticos SA was the worst performer among retailers. Iron-ore producer Vale SA jumped with commodities.

The Ibovespa dropped 0.5 percent to 53,981.92 at the close of trading in Sao Paulo as 43 stocks fell and 23 advanced. Brazil’s retail sales declined 0.1 percent in February from a month earlier, the national statistics agency reported. The median forecast of economists surveyed by Bloomberg was for a 0.2 percent increase.

“The economic outlook is still very challenging,” Rafael Ohmachi, an analyst at brokerage firm SLW Corretora, said in a phone interview from Sao Paulo. “Nothing has really changed on that front.”

Gafisa declined 4 percent to 2.43 reais, while PDG lost 5.3 percent to 54 centavos. JBS sank 5.3 percent to 15.16 reais. Vale added 5 percent to 15.88 reais as the Standard & Poor’s GSCI index of 24 raw materials climbed 1.3 percent.

Petroleo Brasileiro SA, the state-run oil producer known as Petrobras, rose 1.8 percent to 12.49 reais after saying it will present delayed third-quarter and 2014 results at an April 22 board meeting and release them after approval.

The benchmark equity index entered a bear market Dec. 12 after falling 22 percent from last year’s high in September amid concern that President Dilma Rousseff will struggle to revive growth and curb inflation during her second four-year term. The gauge has since advanced 12 percent.

Trading volume of equities in Sao Paulo was 7.2 billion reais ($2.4 billion) on Tuesday, according to data compiled by Bloomberg. That compares with a daily average of 6.7 billion reais this year, according to the exchange.

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