Bovespa Drops as Economists Raise Brazilian Inflation ForecastDenyse Godoy
The Bovespa index fell as economists covering Brazil raised their 2013 inflation forecasts for a sixth week, overshadowing optimism about the country’s growth.
Iron-ore producer Vale SA contributed the most to the gauge’s decline. Billionaire Eike Batista’s logistics unit LLX Logistica SA slumped to the lowest since November after the cancellation of a contract to lease space at its Acu port complex. Localiza Rent a Car SA led gains among companies that sell in the domestic market.
The Bovespa declined 0.2 percent to 58,405.74 at the close of trading in Sao Paulo after rising as much as 0.4 percent earlier. Thirty-three stocks retreated on the gauge while 32 advanced.
“Inflation this year is an important concern for investors,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil. “But there is more optimism about the international environment, and predictions for Brazil in 2014 show a little improvement as well.”
Brazil’s consumer prices will rise 5.71 percent this year, according to the median estimate in a weekly central bank survey of about 100 economists published today, up from 5.68 percent the previous week. Gross domestic product is projected to expand
3.8 percent next year, compared with a 3.7 percent increase forecast in the last poll.
LLX declined 5.4 percent to 1.91 reais. The contract for London-based Subsea 7 to rent space at Acu for making oil and natural gas pipelines was terminated with no prospects of renewal in the “immediate future,” Rio de Janeiro-based LLX said Feb. 8 after the market closed for Brazil’s Carnival break. The company didn’t cite a reason for the cancellation.
Vale slipped 0.9 percent to 37.41 reais. Localiza rose 2.3 percent to 38.35 reais. Oi SA dropped 2.9 percent to 7.64 reais, the lowest since Sept. 5.
The Bovespa climbed 7.4 percent in 2012 in its biggest yearly rally since 2009 as stimulus from central banks around the world eased economic concern and borrowing costs at a record low in Brazil boosted equity demand.
Trading volume was 8.2 billion reais in stocks in Sao Paulo today, according to data compiled by Bloomberg. That compares with a daily average of 7.4 billion reais this year, according to data compiled by the exchange. Brazilian markets were closed the previous two days for Carnival.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- In One Tweet, Kylie Jenner Wiped Out $1.3 Billion of Snap’s Market Value
- China Regulator Seizes Anbang, Chairman Faces Fraud Prosecution
- U.S. Companies Abandon the NRA as Boycott Call Grows
- The Two Words That Will Help Get an Airline Upgrade Over the Phone
- Snap CEO Evan Spiegel Got $638 Million in Year of Firm's IPO