Petroleo Brasileiro S.A. - Petrobras (PBR)

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Brazil Shares Close Lower, Led by Eletrobras; Real Weakens Again


4:59p ET September 23, 2014 (Dow Jones)
By Jeffrey T. Lewis

SAO PAULO--Brazilian shares closed lower Thursday, led by power company Eletrobras (EBR, ELET6.BR), and the real weakened for the fifth consecutive day against the dollar.
The benchmark Ibovespa stocks index fell 0.5% to 56540 points. The real exited active trading at 2.4056 reais to the dollar, according to Tullett Prebon via FactSet, after closing at 2.3963.
Brazilian shares and the real are being buffeted by a combination of the weak economy and political uncertainty. A poll released earlier Tuesday showed President Dilma Rousseff ahead of challenger Marina Silva for the first time since mid-August, though the two are still in a technical tie.
Investors say Ms. Rousseff's policies are too interventionist, and financial markets in Brazil have usually reacted negatively to good polling news for the incumbent. Shares in state-controlled companies have been especially sensitive to poll results.
The biggest decliner in the Ibovespa on Tuesday was Eletrobras, a state-controlled electric utility. The company's shares fell 2.9% to 10.18 reais. State-controlled oil company Petrobras (PBR, PETR3.BR, PETR4.BR), the most heavily weighted company in the Ibovespa, was another big decliner, giving up 2.2% to 20.13 reais.

Write to Jeffrey T. Lewis at [e-mail]