Ibovespa declines on concern Brazil’s economy remains stalled

Julia Leite – Bloomberg, 11/22/2013

The Ibovespa fell for a third straight day, with Banco do Brasil SA leading banks lower, on concern Brazil’s economy remains stalled and amid speculation government deficits will lead to a reduced credit rating.

The MSCI Brazil/Financials Index declined the most among 10 industry groups while retailer Cia. Hering was the biggest loser among consumer stocks. OSX Brasil SA, the shipbuilder of former billionaire Eike Batista, rose after it notified its bond trustee that it will miss next month’s interest payment on $500 million of vessel-backed bonds.

The Ibovespa slipped 0.6 percent to 52,347.62 at 10:26 a.m. in Sao Paulo, extending its weekly drop to 2.1 percent. Fifty-four of its 72 member stocks retreated today as the median forecast of analysts surveyed by Bloomberg called for gross domestic product to expand 2.5 percent this year and next. The economy increased 0.9 percent last year, the worst performance since the 2009 financial crisis.

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