Ibovespa Falls Most in Week as Retail Data Pushes Hering Lower

The Ibovespa fell the most in a week as Cia. Hering led retailers lower after a report showed the industry’s sales trailed estimates in March.

Phone company Oi SA dropped to a record low after reporting a second consecutive quarter of declining revenue. Brasil Pharma SA plunged after its loss widened from a year earlier. Homebuilder MRV Engenharia & Participacoes SA sank as much as 3.7 percent after sales missed analysts’ forecasts.

The Ibovespa retreated 1 percent to 53,855.54 at the close of trade in Sao Paulo, with 52 of its 71 stocks lower. The real fell 0.7 percent to 2.2188 per U.S. dollar at 5:25 p.m. in Sao Paulo. The Bloomberg Base Metals 3-Month Price Commodity Index slid 1.7 percent.

“When it comes to the economy, we’re not seeing anything improving, there’s nothing that could be supporting equities,” Alexandre Ghirghi, a portfolio manager at Metodo Investimentos in Sao Paulo, said in a telephone interview.

Brazil’s retail sales declined 1.1 percent in March from a year earlier, the national statistics agency said today. The median forecast of economists surveyed by Bloomberg was for a 0.3 percent drop.

Hering fell 4 percent to 23.23 reais. MRV was unchanged at 7.04 reais at the close of trading. MSCI Inc. will remove both stocks from its Brazil gauge in changes effective as of the close May 30.

Oi tumbled 8 percent to 1.83 reais in its fifth straight day of losses, the longest streak since February.

‘Sharp Miss’

Brasil Pharma lost 1.8 percent to 3.28 reais. The pharmacy chain’s first-quarter results were a “sharp miss” and should have a negative impact on the shares, Banco Itau BBA SA analysts including Vitor Paschoal wrote in a note to clients.

The Ibovespa entered a bull market on May 7, surging 20 percent from this year’s low on March 14 through that day, as Petroleo Brasileiro SA rallied on speculation a change in government after the October election will reduce intervention in state-run companies.

Trading volume of stocks in Sao Paulo was 5.3 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.74 billion reais this year, according to data from the exchange.

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