Ibovespa Futures Decline as Petrobras Seen Missing Output Target
Ibovespa futures dropped after Petroleo Brasileiro SA’s output report added to speculation that the oil company will miss this year’s production target.
Ibovespa futures contracts expiring in December lost 0.2 percent to 52,820 at 9:18 a.m. in Sao Paulo. The real weakened 0.1 percent to 2.5599 per dollar. Petrobras, as Petroleo Brasileiro is known, said yesterday its total oil and gas output increased 0.5 percent in October from the prior month.
Results were “extremely disappointing” and signal there’s “only a negligible chance” of the oil company meeting its 2014 output target, Auro Rozenbaum, an analyst at Banco Bradesco SA’s brokerage unit, wrote in a research report.
Brazil’s benchmark equity index has fallen 15 percent from this year’s high in September as President Dilma Rousseff’s re-election Oct. 26 ended speculation that a victory for an opposition candidate would help to boost growth and reduce intervention in state-owned companies.
Trading volume of equities in Sao Paulo yesterday was 4.89 billion reais, according to the exchange. That compares with a daily average of 7.24 billion reais this year.
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- November 12, 2014
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