Ibovespa Declines a Second Day as Natura Sinks on Earnings Miss

The Ibovespa dropped for a second day as cosmetics maker Natura Cosmeticos SA led Brazilian consumer stocks lower after reporting quarterly earnings that trailed analysts’ estimates.

Brookfield Incorporacoes SA sank to the lowest since July and Gafisa SA fell the most in two months after a report showed Brazil’s unemployment rate was higher than economists had forecast, dimming the outlook for homebuilders. Pulp producer Fibria Celulose SA rose on signs manufacturing growth is picking up in China, Brazil’s top trading partner.

The Ibovespa fell 1 percent to 54,877.15 at the close of trading in Sao Paulo. The real declined 0.6 percent to 2.2035 per dollar at 5:24 p.m. local time. Brazil’s jobless rate rose to 5.4 percent in September from 5.3 percent in the prior month, data from the national statistics agency today showed. Economists surveyed by Bloomberg had forecast unemployment to remain at 5.3 percent.

“When it comes to Brazil’s economic activity, or earnings, there’s nothing that supports a rebound in stocks,” Clodoir Vieira, a consultant at brokerage Souza Barros in Sao Paulo, said in a phone interview.

Natura declined 3.8 percent to 45.40 reais after posting third-quarter net income of 183.7 million reais, compared with an average estimate of 228.7 million reais among analysts surveyed by Bloomberg.

Brookfield lost 4.5 percent to 1.49 reais. Gafisa slipped 6 percent to 3.11 reais.

Fibria Rally

Fibria rose 2.9 percent to 28.60 reais after a report by HSBC Holdings Plc and Markit Economics showed a preliminary reading of 50.9 for a Purchasing Managers’ Index in China, higher than the 50.4 median estimate of analysts surveyed by Bloomberg. Readings above 50 indicate expansion.

Fleury SA, a Brazilian medical-services provider, surged

6.8 percent to 18.15 reais, the most since August 2010. The shares climbed as Exame reported without saying where it got the information that the company is looking for a buyer. Fleury said it doesn’t comment on market speculation in an e-mailed response to questions from Bloomberg News.

Brazil’s benchmark equity index entered a bull market 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 2.3 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo today was 5.23 billion reais, according to data compiled by Bloomberg. That compares with a daily average of 7.61 billion reais this year through Oct. 22, according to data from the exchange.