Petrobras Sinks With Ibovespa as UBS Cuts Profit Outlook by 80%
- Analysts see currency decline curbing prospects for company
- Benchmark stock gauge joins global rout as banks tumble
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The outlook for Petroleo Brasileiro SA worsened further after UBS AG cut its earnings projection by 80 percent, spurring a slide in the oil producer at the center of Brazil’s largest graft probe. The Ibovespa followed a selloff in global stocks.
Shares of Petrobras extended a plunge over the past year to 64 percent, more than double the decline in the stock benchmark, after the Zurich-based bank said that a weaker currency may sap profitability. The Ibovespa has slumped 4.7 percent over the past three days, while the real led global losses.