Shares of Brazilian companies listed on U.S. exchanges tumbled in Friday’s trade after an opinion poll revealed that while Brazilian President Dilma Rousseff remains in the lead, her top contender, Marina Silva Marina Silva, is quickly closing the gap for what looks to be a run-off race on October 5.
In recent weeks, polls forecasting Silva with the presidential victory caused a swell in Brazilian markets, reflective of investor criticism of the current administration’s excessive interference in the economy.
As a side note, the central bank today said Brazil’s economy, which fell into a technical recession in the second quarter, grew 1.5% in July relative to June, marking the largest monthly expansion in the past six years.
U.S.-listed shares of Petrobras (PBR.N) closed Friday’s session down 7.0% at $16.38.
Banco Bradesco (BBD.N) slid 4.7% to close at $15.81, while Itau Unibanco (ITUB.N) shares gave up 5.2% to close at $15.86.
Shares of Miner Vale’s (VALE.N) ticked 0.5% lower to a close at $79.38.
The BNY Mellon index of Latin American ADRs (.BKLA) closed down 2.3%, outpacing losses on the bank’s index of leading American depositary receipts (.BKADR), which closed the day down 0.3%.
Let us hear your thoughts below: