Ibovespa Declines as Petrobras Drops Before Voter Poll Results

The Ibovespa fell as oil producer Petroleo Brasileiro SA led a decline among state-controlled companies before the results of the first voter polls on the presidential election runoff.

Brewery Ambev SA slumped as a report showing faster inflation dimmed the prospects for makers of consumer goods. Phone carrier Oi SA was the worst performer on the equity index after Zeinal Bava stepped down as chief executive officer.

The Ibovespa fell 0.7 percent to 57,058.48 at the close of trading in Sao Paulo after climbing as much as 1.3 percent earlier today. The real gained 0.8 percent to 2.3779 per dollar at 5:23 p.m. local time. Ibope and Datafolha may publish election polls tomorrow as opposition candidate Aecio Neves prepares to face President Dilma Rousseff in the runoff Oct. 26.

“There will be a lot of volatility in the markets depending on polls results,” Eduardo Velho, the chief economist at INVX Global Partners, said in a phone interview from Sao Paulo. “Investors think that Neves would be the best president to make the reforms Brazil needs, but Rousseff finished the first round as the leader. She can still win.”

Petrobras closed 1.7 percent lower at 20.85 reais, after declining as much as 5.7 percent earlier. State-run utility Centrais Eletricas Brasileiras SA dropped 1.5 percent to 10.50 reais. Oi slumped 8.4 percent to 1.52 reais. Ambev slid 1.8 percent to 16.14 reais.

The Ibovespa has still risen 27 percent from this year’s low in March on speculation that a change in government will reduce intervention, boost growth and curb inflation.

Faster Inflation

The benchmark index advanced earlier today as a report showing accelerating inflation in Brazil dimmed the prospects for Rousseff’s re-election.

The national bureau of statistics reported that consumer prices rose 6.75 percent in September from a year earlier, faster than the 6.65 percent increase forecast by economists surveyed by Bloomberg. The official target is 4.5 percent, plus or minus two percentage points.

Trading volume of equities in Sao Paulo was 10.8 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.9 billion reais this year, according to the exchange.

Before it's here, it's on the Bloomberg Terminal.