Brewer Cia. de Bebidas das Americas is climbing the ranks of Brazil’s largest companies by market value as a growing consumer market in the world’s second-biggest emerging economy swells sales of Brahma beer and Guarana soda.
The Bovespa index fell, snapping a two-day advance, as lower oil prices pushed producer Petroleo Brasileiro SA down amid concern a bailout for Spain’s banks won’t be enough to stop Europe’s crisis from worsening.
The Bovespa index tumbled the most since February amid speculation investors are closing out so- called stop-loss trades as economic growth falters in Brazil and the U.S., offsetting the cheapest valuations in two years.
Brazilian stocks rose for the first time in three days as a better-than-expected auction of Spanish debt and improving German investor confidence allayed European debt concerns and lifted commodity prices.
Felipe Casotti, equity manager at Brazil’s Maxima Asset Management in Rio de Janeiro, said the Bovespa stock index’s plunge today is due to investors fearful of a repeat of the losses during the 2008 financial crisis. He helps manage 1.2 billion reais ($760 million) in assets and made the comments in a phone interview.
The Bovespa index fell, extending three weeks of losses, after faster inflation in China and weaker job creation in the U.S. spurred concern that economic growth will slow for Brazil’s two biggest trading partners.
Brazilian steelmakers trading at the cheapest level in a year are luring the nation’s top-performing stock funds on prospects President-elect Dilma Rousseff will take steps to protect the industry from foreign competition.
The Bovespa index dropped to a seven-week low as Brazilian banks tumbled on concern the global financial system may be hurt by a worsening credit crisis in Europe after Standard & Poor’s said Greece may have to restructure its debt again.
The Bovespa index dropped the most in five months as rising Italian bond yields stoked concern Europe’s sovereign-debt crisis is deepening and economists covering Brazil’s economy increased their inflation forecasts.