Ibovespa Futures Fall as Commodity Decline Dims Export Outlook

Ibovespa futures dropped, after Brazil’s benchmark stock gauge climbed yesterday to a one-week high, as a decline in commodities dimmed the outlook for the nation’s raw-materials exporters.

Power utility Light SA may move as Grupo BTG Pactual cut its recommendation on the stock to the equivalent of hold. Water utility Cia. de Saneamento Basico do Estado de Sao Paulo, known as Sabesp, may be active after its board approved a plan to get as much as 442.2 million reais ($198 million) in financing.

Ibovespa futures contracts due in June retreated 0.1 percent to 53,255 at 9:19 a.m. in Sao Paulo. The benchmark index advanced 0.6 percent yesterday to its highest since May 19. The real lost 0.4 percent to 2.2323 per U.S. dollar today. The Standard & Poor’s GSCI Index of 24 raw materials dropped 0.2 percent. Commodity producers account for about one-third of the Ibvovespa’s weighting, according to data compiled by Bloomberg.

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

Trading volume of stocks in Sao Paulo was 2.16 billion reais yesterday, compared with a daily average of 6.65 billion reais this year, according to data from the exchange. U.S. markets were closed for a holiday.

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