BLBG:Bovespa Futures Fall as Commodities Drop Dim Producer Prospects
Bovespa-index futures declined for a third session as a drop in commodities prices dimmed the outlook for Brazilian producers.
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may decline as crude retreated and after Jefferies & Co. lowered its recommendation to hold from buy. Mining company Vale SA may move after it agreed to sell gold mined in Brazil and Canada to Silver Wheaton Corp. for $1.9 billion.
Bovespa-index futures fell 0.3 percent to 59,265 at 9:13 a.m. in Sao Paulo. The real weakened 0.2 percent to 1.9884 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 0.3 percent amid concern political turmoil in Spain and Italy may hamper governments in responding to the euro-area debt crisis that threatens growth and demand.
Spanish Prime Minister Mariano Rajoy faces calls to resign amid contested reports of party corruption, while former Italian Premier Silvio Berlusconi aims to return to office in elections in three weeks. The euro weakened against most of its 16 major counterparts.
Tim Participacoes SA, Brazil’s second-largest wireless carrier by market share, may move after saying Chief Executive Officer Andrea Mangoni resigned. Apparel retailer Marisa Lojas SA may be active after posting fourth-quarter net income that exceeded analysts’ estimates.
Machinery manufacturer Industrias Romi SA, may be active after reporting a net loss of 4.14 million reais ($2.08 million) in the fourth quarter.
The Bovespa entered a bull market on Jan. 3 after rising 21 percent from last year’s low on June 5 as stimulus from central banks around the world eased concern that economic growth might miss expectations while borrowing costs at a record low in Brazil boosted equity demand. The index has since pared its advance to 13 percent.
Stock Valuation
Brazil’s benchmark equity gauge trades at 10.9 times analysts’ earnings estimates for the next four quarters, compared with 9.8 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 8.66 billion reais yesterday, which compares with a daily average of 7.3 billion reais this year through Feb. 4, according to data compiled by the exchange.
To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
