Most Brazilian Stocks Decline as Lower Metal Prices Sap Vale
Most Brazilian stocks declined as commodities producers including mining company Vale SA followed metals lower amid concern that the global recovery will falter, outweighing gains in consumer companies.
Metalurgica Gerdau SA, the parent of Latin America’s biggest steelmaker, sank the most on the MSCI Brazil/Materials index. Clothing seller Cia. Hering (HGTX3) led consumer stocks higher after a report showing retail sales in Brazil increased more than forecast.
The benchmark Ibovespa was little changed at 53,552.14 at 11:05 a.m. in Sao Paulo with 40 stocks lower and 33 higher. The Bloomberg Base Metals 3-Month Price Commodity Index lost 1.1 percent as reduced industrial production and higher unemployment from Germany to Australia fueled concern that economies are still struggling. The real dropped 0.3 percent to 2.2826 per dollar.
Vale declined 0.2 percent to 32.89 reais. Metalurgica Gerdau fell 0.7 percent to 21.68 reais. Hering rose 2.9 percent to 33.93 reais.
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