Petrobras May Trail Bovespa as BlackRock Favors Banks

Petroleo Brasileiro SA, the biggest drag on Brazil’s benchmark stock index this year, may trail the Bovespa in 2011 on investors’ concern the oil producer’s investments will crimp profits, according to BlackRock Inc.

Will Landers, who oversees the $1.05 billion Latin America Fund at the world’s biggest asset-management firm, said he sold Petrobras as the stock plunged 30 percent in 2010 and remains “underweight” heading to next year. Banks and homebuilders are the most attractive industries in Brazil, poised to benefit from rising domestic demand, Landers, 41, said in an interview.