Bovespa Retreats as Brazilian Producers Decline on China EconomyNey Hayashi
The Bovespa index fell for a second session as raw-material producers including steelmaker Cia. Siderurgica Nacional SA tumbled after China’s industrial output growth trailed economists’ estimates.
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, followed crude lower. Competitor OGX Petroleo & Gas Participacoes SA slumped after saying its daily production per offshore well fell to 3,800 barrels in February from 4,900 in January.
The Bovespa declined 0.7 percent to 58,025.07 at 10:36 a.m. in Sao Paulo. Forty-one stocks advanced on the gauge while 26 retreated. The Bloomberg Base Metals 3-Month Price commodity Index dropped 0.8 percent after China’s statistics bureau said industrial production climbed 9.9 percent in the first two months of 2013, below the median forecast of 10.6 percent among 22 economists surveyed by Bloomberg.
“China’s latest economic data were worse than expected, which helps to push the Bovespa lower, given that some of Brazil’s biggest companies depend on commodities exports,” Luis Gustavo Pereira, an analyst at Futura Corretora in Sao Paulo, said in a telephone interview. “OGX is also a big chunk of today’s drop. Its production figures were disappointing.”
OGX plunged 15 percent to 2.65 reais. CSN, as Cia. Siderurgica is known, dropped 1.5 percent to 10.48 reais.