Brazil Stocks Decline as Petrobras Slump Overshadows Valuations
- State-controlled company falls with crude near 12-year low
- Financial stocks including Itau attract long-term investors
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Brazil’s stocks posted its biggest five-day slump in more than a year as state-controlled oil producer Petroleo Brasileiro SA tumbled amid a drop in crude prices and a cut in output and spending.
Petrobras, as Petroleo Brasileiro is known, slumped 9.2 percent to 5.53 reais, the worst performance on the benchmark Ibovespa index. Oil dropped below $30 a barrel in New York for the first time in 12 years, dimming the outlook for the Brazilian producer’s offshore investments. While forecasting crude at $45 this year, the company cut spending and reduced estimates for its production growth.