Ibovespa Falls Most in One Week as Petrobras Follows Crude Lower

The Ibovespa fell the most in a week as Petroleo Brasileiro SA declined amid concern that recent gains may have been excessive given the outlook for oil prices.

Raw-material producers including steelmakers Usinas Siderurgicas de Minas Gerais SA and Gerdau SA followed commodities lower. Mining company Vale SA dropped for the first time in four days.

The Ibovespa lost 0.1 percent to 53,661.11 at the close of trading in Sao Paulo, the biggest one-day decline since March 31. Petrobras, as Petroleo Brasileiro is known, fell 2.7 percent to 10.60 reais as oil futures sank 5.7 percent in New York after a report showed an increase in U.S. inventories.

“There are still a lot of risks surrounding Petrobras, and the stock has a significant weighting on the Ibovespa,” Luis Gustavo Pereira, an analyst at brokerage firm Guide Investimentos, said by phone from Sao Paulo.

Petrobras gained 4 percent earlier in the day after a report that the state-controlled company may get a $1.7 billion payment from one of its suppliers for contract losses. Bearish bets on the company’s American depositary receipts rose to a record 12.9 percent of shares outstanding as of Tuesday, according to data compiled by London-based Markit and Bloomberg.

Usiminas, as Usinas Siderurgicas is known, lost 4.2 percent to 4.60 reais. Gerdau dropped 1.8 percent to 9.70 reais.

Brazil’s main equity index will probably rise to 60,000 by the end of the year as Brazil cuts spending and increases government transparency, helping to revive economic growth, Guilherme Benchimol, chief executive officer of brokerage firm XP Investimentos, said in interview at the firm’s headquarters in Sao Paulo.

The Ibovespa entered a bear market Dec. 12 after falling 22 percent from last year’s high in September amid concern that President Dilma Rousseff would fail to revive growth and curb inflation in her second four-year term. Trading volume of equities in Sao Paulo was 6.23 billion reais Tuesday, according to the exchange. That compares with a daily average of 6.68 billion reais this year.

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