Brazil’s second-quarter earnings season is wrapping up with most companies posting better-than-forecast results. The surprises weren’t enough to bolster the benchmark index, which slid for a fourth straight day.
Of the 56 companies on the Ibovespa stock gauge that have already released financial reports for the three months ended June, about two-thirds posted earnings that beat analysts’ estimates, data compiled by Bloomberg show.
While many companies posted declines in profit from a year earlier, the better-than-forecast results are a rare bright spot in an economy heading for its worst recession in a quarter century. Nationwide protests are planned for Sunday after a corruption scandal fractured President Dilma Rousseff’s support in Congress and left her fighting for her political survival.
“The earnings reports obviously reflect our economic situation, but at the same time there were indications that, for example, exporters despite the losses benefited from the exchange rate,” said Jason Vieira, chief economist at Infinity Asset Management.
The Ibovespa fell 0.7 percent to 47,676.65 at 11:19 a.m. in Sao Paulo trading. That puts it on course to post a 1.9 percent loss since Aug. 7, its second straight weekly decline.