Bovespa-index futures fell as lower commodity prices dimmed the outlook for Brazilian raw-material producers amid concern that slower growth in the world economy will curb demand.
Banco do Brasil SA (BBAS3), Latin America’s biggest bank by assets, may move after saying it might raise as much as 12.2 billion reais in the initial public offering of its insurance unit. Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-biggest steelmaker, may move after Banco Santander SA raised its 2013 year-end share price forecast to 9 reais from 7 reais.
Bovespa-index futures contracts expiring in April sank 0.2 percent to 54,710 at 9:11 a.m. in Sao Paulo. Brazil’s real was little changed at 2.0189 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 0.4 percent.
Figures today will show U.S. service industries, ranging from housing to retailing, expanded at a slower pace last month, economists surveyed by Bloomberg said. Manufacturing in the euro zone shrank for a 20th month in March, according to a report yesterday.
The Bovespa (IBOV) has retreated 13 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index (MXBRIC) of shares in Brazil, Russia, India and China has lost 7.8 percent over the same period.
Brazil’s benchmark equity gauge trades at 10.9 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index (MXEF) of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 6.43 billion reais ($3.18 billion) yesterday, which compares with a daily average of 7.47 billion reais this year through April 1, according to data compiled by the exchange.
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