Ibovespa Futures Fall as Drop in Commodities Dims Export Outlook

Ibovespa futures fell as commodities retreated, dimming the outlook for Brazilian raw-material producers.

Power utility Eletropaulo Metropolitana SA may move as Moody’s Investors Service cut its credit rating one level to speculative grade because of lower electricity rates and operational cash flow. Former billionaire Eike Batista’s logistics company LLX Logistica SA may be active after renewing a bridge loan of 518 million reais ($234 million) with Brazil’s development bank, known as BNDES.

Ibovespa futures contracts expiring in October dropped 0.6 percent to 54,420 at 9:19 a.m. in Sao Paulo. The real weakened 0.7 percent to 2.2182 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials declined 0.4 percent. Commodity producers account for 39 percent of the Ibovespa’s weighting.

The Ibovespa entered a bull market on Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 16 percent in dollar terms this year, compared with a decline of 3.3 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 7.8 billion reais yesterday, compared with a daily average of 7.75 billion reais this year through the same day, according to data compiled by the exchange.

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