Ibovespa Falls as Fibria Sinks on Weaker-Than-Forecast U.S. GDP

The Ibovespa fell, trimming a weekly gain, as pulp maker Fibria Celulose SA led commodities producers lower after a report that showed slower-than-forecast U.S. growth dimmed the outlook for Brazilian exports.

Vale SA, the world’s biggest iron-ore mining company, contributed the most to the benchmark’s decline. Steelmaker Usinas Siderurgicas de Minas Gerais SA dropped after profit trailed analysts’ estimates. OGX Petroleo & Gas Participacoes, billionaire Eike Batista’s oil company, surged as investors bought shares to cover short positions.

The Ibovespa dropped 1.3 percent to 54,252.04 at the close of trading in Sao Paulo, paring a weekly gain to 0.6 percent. Fifty-eight of the measure’s 69 stocks retreated today. The real gained 0.1 percent to 1.9986 per dollar. The Standard & Poor’s GSCI index of 24 raw materials sank 0.5 percent after a report showed U.S. gross domestic product rose at a 2.5 percent annual rate, lower than the median analyst forecast of 3 percent.

“Investors have been very focused this week on numbers that may help to adjust expectations about global growth in 2013,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil. “There are signs of a slowdown all over the world, which means bad news for Brazilian companies.”

The U.S. is Brazil’s second-biggest trading partner, accounting for 13 percent of the Latin American country’s total international commerce, according to data compiled by the government.

Fibria, Usiminas

Fibria tumbled 6.6 percent to 21.02 reais. Vale fell 2.7 percent to 31.68 reais. Commodities producers account for about 38 percent of the Ibovespa’s weighting, according to data compiled by Bloomberg.

Usiminas, as Usinas Siderurgicas is also known, fell 5.3 percent to 10.06 reais. The company’s first-quarter adjusted net loss more than doubled to 153.6 million reais from the same period a year earlier, according to data compiled by Bloomberg. The average estimate of four analysts surveyed by Bloomberg was for a loss of 49.3 million reais.

Steelmaker Metalurgica Gerdau SA slumped 2.1 percent to

19.10 reais after Grupo BTG Pactual cut its recommendation on the stock to the equivalent of hold from buy.

Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest air carrier by market share, slumped 3.3 percent to 13.35 reais after pricing shares near the bottom of expected range in the initial public offering of its Smiles SA frequent-flier unit. The company and its shareholders priced shares at 21.70 reais each. The projected range was of 20.70 to 25.80 reais a share.

‘A Bit Uncomfortable’

Banco do Brasil SA fell 2.1 percent to 25.19 reais after selling shares in its insurance unit BB Seguridade Participacoes SA at 17 reais apiece, within an expected range of 15 reais to 18 reais.

“The fact that shares were priced near the bottom of the expected range is a bit uncomfortable, but we’ve got to keep in mind that the parent companies’ shares had already risen a lot and now they’re out of positive news to trigger additional rallies,” Sandro Fernandes, a trader at brokerage Omar Camargo, said by phone from Belo Horizonte, Brazil.

OGX rose 8.9 percent to 1.83 reais. Short interest on the oil producer’s shares reached a record 267.8 million shares yesterday, which accounts for 21.3 of free float, data compiled by Bloomberg shows. Short positions for the company increased five-fold in past 12 months.

Relative Value

The Ibovespa has retreated 14 percent from this year’s peak on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index of shares in Brazil, Russia, India and China has lost 7.4 percent over the same period.

Brazil’s benchmark equity gauge trades at 11.1 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 6.66 billion reais today, data compiled by Bloomberg show. That compares with a daily average of 7.67 billion reais this year, according to data compiled by the exchange.