BM&FBovespa Fourth-Quarter Profit Trails Analysts’ Estimates

BM&FBovespa SA, the operator of Latin America’s biggest securities exchange, reported a fourth-quarter profit that trailed analysts’ estimates.

Adjusted net income rose 7.6 percent to 379.4 million reais ($194 million) from the same quarter a year earlier, the Brazilian exchange said today in a regulatory filing. The average estimate of six analysts surveyed by Bloomberg was for a profit of 396.2 million reais.

Average daily trading volume in stocks gained 9.4 percent to 7 billion reais.

“Uncertainties regarding Brazil’s growth and concern over the federal government intervention on the economy made the market volatile by the end of the year,” Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview before the earnings were released.

President Dilma Rousseff last year lowered taxes on consumer goods, pressured banks to reduce borrowing costs, ordered power utilities and phone companies to cut prices and capped car imports from Mexico to boost domestic demand and spur growth in Latin America’s biggest economy.

Sao Paulo-based BM&FBovespa’s shares jumped 14 percent in the fourth quarter on bets that Brazil’s record low interest rates would help to drive more investors into riskier assets. The Bovespa stock index rose 3 percent during the period.

The shares fell 1.6 percent to 13.53 reais today in Sao Paulo, leaving them down 3.4 percent this year.

Brazilian central bankers led by Alexandre Tombini cut the country’s benchmark interest rate by 3.75 percentage points during 2012 to 7.25 percent, the lowest on record.

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