Brazil’s Bovespa dragged down by Petro­bras plunge

The Financial Daily - - NATIONAL -

SAO PAULO: Brazil's main stock in­dex sank on Wed­nes­day as shares of staterun oil com­pany Petro­bras plunged on con­cerns over po­ten­tial losses stem­ming from a multi­bil­lion-dol­lar cor­rup­tion scan­dal.

The bench­mark Bovespa in­dex dropped about 1.4 per­cent and was on track for its weak­est clos­ing level in over three weeks, while the broader MSCI Latin Amer­i­can stock in­dex erased the pre­vi­ous ses­sion's gains.

Petro­bras re­leased unau­dited third-quar­ter re­sults on Wed­nes­day af­ter months of de­lays, though the state­ment left in­vestors in the dark over the fi­nan­cial im­pact of the kick­back scheme that in­ves­ti­ga­tors un­veiled last year.

Pre­ferred and com­mon shares of Petroleo Brasileiro SA , as the com­pany is for­mally known, both shed about 12 per­cent, their big­gest loss in three months.

"It's quite frus­trat­ing," wrote an­a­lysts at Brazil­ian bro­ker­age Plan­ner in an in­vestor note. "Ev­ery­one was wait­ing for these num­bers in or­der to have some kind of mea­sure of the losses and the value of the com­pany's as­sets."-Agen­cies

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