Petroleo Brasileiro S.A. - Petrobras (PBR)

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Petrobras, Brazil Stocks Dive On Rousseff Re-Election

By GILLIAN RICH, INVESTOR'S BUSINESS DAILY


Posted 10:32 AM ET




Petrobras (NYSE:PBR) and other Brazilian stocks plunged Monday after leftist President Dilma Rousseff was re-elected Sunday.

Rousseff narrowly won re-election over center-right and pro-business candidate Aecio Neves, with 51.6%. Neves won many of the more prosperous states in southern Brazil, while Rousseff remained popular in the poorer north with her expansion of welfare programs.

In her victory speech, Rousseff said she wanted to be "a much better president than I have been until now."

President Dilma Rousseff, accepting re-election Sunday, sent Brazilian stocks down Monday.
President Dilma Rousseff, accepting re-election Sunday, sent Brazilian stocks down Monday. View Enlarged Image

But the markets were skeptical as investors worried about the high level of government intervention in Brazil's economy.

During Rousseff's time in office, inflation climbed past projections and Brazil's economy saw the slowest growth in 20 years. Many critics blamed her, but Rousseff said the inflation came at the expense of saving jobs.

Shares of Petrobras, the state run oil firm, plunged 13.8% to 11.15 — down 47% since its Sept. 2 high. Politically directed investments and subsidized gasoline have been hallmarks of Rousseff's oversight of Petrobras.


Read More At Investor's Business Daily: http://news.investors.com/business/102714-723536-petrobras-stock-falls-brazil-president-rousseff-wins-reelection.htm#ixzz3HMYsOO00
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