Ibovespa Declines as Vale Reports Second Straight Quarterly Loss

The Ibovespa trimmed its monthly gain after Vale SA reported a second consecutive quarterly loss.

Oil producer Petroleo Brasileiro SA fell after saying it sees the need to cut investments and look for alternative sources of financing following Tuesday’s downgrade by Moody’s Investors Service. Real-estate developer BR Properties SA rallied after Grupo BTG Pactual and Brookfield Property Group made a bid to acquire a controlling stake in the company.

The Ibovespa fell 0.1 percent to 51,760.54 at the close of trading in Sao Paulo, paring its monthly advance to 10 percent. Vale’s fourth-quarter net loss narrowed to $1.85 billion, or 36 cents a share, from a record loss a year earlier of $6.45 billion, or $1.26 a share, the Rio de Janeiro-based company said Thursday in a statement before markets opened.

“The scenario is very challenging for Brazilian raw-materials exporters,” Jason Vieira, an economist at consulting firm XInfinity Invest, said by telephone from Sao Paulo. “The trend for commodity prices is one of the main factors that investors are monitoring right now.”

Vale, which accounts for about 4 percent of Ibovespa’s weighting, slumped 3.9 percent to 18.40 reais. Petrobras, as Petroleo Brasileiro is known, fell 1.2 percent to 9.27 reais. Its credit rating was cut to junk by Moody’s this week amid a widening corruption probe.

BR Properties climbed 9.5 percent to 11.71 reais. BTG and Brookfield plan to offer 12 reais per share to buy a stake of at least 85 percent in the company.

The Ibovespa entered a bear market Dec. 12 after falling 22 percent from last year’s high in September.

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