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Bovespa-Index Futures Fluctuate as Cyrela Reports Sales Decline

January 22, 2013

Bovespa-index futures swung between gains and losses as Brazil’s biggest homebuilder Cyrela Brazil Realty SA Empreendimentos e Participacoes reported a drop in sales last year.

Sales fell 7.6 percent to 6 billion reais ($2.9 billion), Cyrela said in a regulatory filing yesterday. That was 13 percent below Banco Itau BBA’s forecast, according to a research note today from analysts including David Lawant, who called the company’s results “weak.”

Usinas Siderurgicas de Minas Gerais SA, Brazil’s second- biggest steelmaker by output, may move after Banco BTG Pactual SA lowered its recommendation to sell. Aliansce Shopping Centers SA may be active after saying fourth-quarter sales in its shopping malls jumped 19 percent to 2 billion reais from a year earlier.

Bovespa-index futures climbed less than 0.1 percent to 62170 at 9:09 a.m. in Sao Paulo, after declining as much as 0.1 percent in earlier trading. The real strengthened 0.1 percent to 2.0402 per dollar.

Coal producer CCX Carvao da Colombia SA, Eike Batista’s coal unit, may move after saying the Brazilian billionaire will buy back all shares and delist the stock from the Sao Paulo exchange.

The Bovespa (IBOV) 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 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 18 percent.

Brazil’s benchmark equity gauge trades at 11.5 times analysts’ earnings estimates for the next four quarters, compared with 11 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume of stocks in Sao Paulo yesterday was 6.66 billion reais, compared with a daily average of 7.25 billion reais in 2012, according to data compiled by the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at

To contact the editor responsible for this story: David Papadopoulos at

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