Most Brazil Stocks Fall as Impeachment Anxiety Offsets Petrobras

Updated on
  • State-controlled crude oil producer gains on rebound plan
  • Senate set to wrap up Dilma Rousseff’s trial Wednesday

Most Brazilian stocks declined as the impeachment trial of suspended President Dilma Rousseff neared its end.

Consumer stocks including retailer Lojas Americanas SA declined after Supreme Court head Ricardo Lewandowski said an impeachment vote will likely occur Wednesday, disappointing some traders who had expected it late Tuesday. State-run oil producer Petroleo Brasileiro SA rose to the highest price since June 2015 after Chief Executive Officer Pedro Parente said the sale of assets to Statoil ASA will reduce investment needs.

Brazil’s stocks have gained 35 percent this year on speculation that a new government would be able to shore up the country’s finances and help pull it from its worst recession in a century. Since temporarily taking over in May, Acting President Michel Temer has sought to restore investor confidence by appointing new management at Petrobras, among other measures.

"The plan to fix Petrobras is very good, and the market has welcomed the initiatives as they’ll make the company stronger and more profitable," Hersz Ferman, an analyst at the brokerage Elite Corretora, said from Rio de Janeiro. Nevertheless, market remains volatile “as a very important definition of the nation’s future in on the table."

The Ibovespa fell 0.1 percent to 58,575.42 at the close of trading in Sao Paulo after earlier swinging between gains and losses of 0.5 percent. Petrobras rose 1.7 percent despite the decline in crude prices, which sent its smaller rival QGEP Participacoes down 1.4 percent. Lojas Americanas dropped as much as 3.6 percent. The MSCI Brazil Consumer Discretionary Index was the worst performer among 10 industry groups after the unemployment rate rose to 11.6 percent, exceeding the average estimate of 11.5 percent among economists surveyed by Bloomberg.

Pulp producer Suzano Papel & Celulose SA, which gets most of its revenue from exports, climbed 2.4 percent to a four-week high as the real depreciated.