Ibovespa Falls to Three-Month Low as Poll Shows Rousseff SupportNey Hayashi
The Ibovespa fell to a three-month low as a voter poll showing increased support for President Dilma Rousseff in this month’s election curbed bets that a new government would boost the economy.
State-owned oil producer Petroleo Brasileiro SA contributed the most to the gauge’s decline. Airline Gol Linhas Aereas Inteligentes SA was the worst performer on the stock benchmark as a weaker real makes jet-fuel imports more expensive.
The Ibovespa dropped 1.1 percent to 53,534.71 at 11:09 a.m. in Sao Paulo, extending a three-day rout to 6.5 percent. The real weakened 0.3 percent to 2.4549 per dollar. Rousseff would have 49 percent support against 41 percent for Silva in a probable Oct. 26 runoff, according to the Sept. 29-30 poll published yesterday by Folha de S. Paulo newspaper.
“What you see know is a scenario that’s different from what people were anticipating a few weeks ago, with Dilma rising in polls,” Pedro Galdi, the head strategist at brokerage SLW Corretora, said in a telephone interview from Sao Paulo.
The Datafolha survey has a margin of error of plus or minus 2 percentage points. Rousseff and Silva were in a statistical tie in last week’s poll.
Petrobras, as Petroleo Brasileiro is known, fell 2.1 percent to 17.72 reais. The stock extended its slide from this year’s high on Sept. 2 to 28 percent. State-owned lender Banco do Brasil SA retreated 1.2 percent to 25 reais today. Gol sank 3.6 percent to 11.28 reais.
For-profit college operator Gaec Anima Educacao SA rose 1.3 percent to 29.98 reais after Valor Economico newspaper reported the company is in talks to buy two universities in Brazil.
Brazil’s benchmark gauge has dropped 13 percent from this year’s high in September after polls showed increased support for Rousseff’s re-election bid, curbing speculation that a new administration would reduce intervention in the economy and act to bolster growth.
Trading volume of equities in Sao Paulo was 10.7 billion reais yesterday, according to the exchange. That compares with a daily average of 6.84 billion reais this year.