Bovespa Stock Index Fluctuates as Disappointing Earnings Offsets Oil Gains

The Bovespa stock index fluctuated as companies posted lower-than-forecast earnings, offsetting a gain for oil producers.

Oil companies OGX Petroleo & Gas Participacoes SA and Petroleo Brasileiro SA (PETR4) rose as crude prices climbed for a fourth day. Beef producer JBS SA (JBSS3) and homebuilder MRV Engenharia & Participacoes SA posted fourth-quarter earnings that trailed analysts’ estimates.

The Bovespa stock index fell 0.2 percent to 67,672.36 at 9:43 a.m. New York time, after earlier rising as much as 0.3 percent. Thirty-nine stocks gained on the index, while 23 fell. The real strengthened 0.1 percent to 1.6580 per U.S. dollar.

Oil gained as much as 0.9 percent as fighting in Libya heightened concern about Middle East exports. Crude rose as the U.K. launched further attacks by submarine against Libyan air- defense systems. Libyan government troops increased military action, killing 16 people yesterday in the towns of Misrata and Zentan, an opposition spokesman said. of the U.S. unit’s initial public offering.

JBS had a fourth-quarter net loss of 145.7 million reais ($88 million), compared with net income of 127.9 million reais a year earlier. The meat producer was expected to report a loss of 102.3 million reais excluding some items, according to the average estimate of three analysts in a Bloomberg survey. JBS fell 1.3 percent to 6 reais.

MRV reported fourth-quarter net income of 152.1 million reais, below a 202 million reais forecast by JPMorgan Chase & Co. The shares fell 5.1 percent to 13.38 reais.

OGX gained 0.5 percent to 19.67 reais. Petroleo Brasileiro climbed 0.1 percent to 28.65 reais.

The Bovespa lost 2.2 percent this year through yesterday after homebuilders and banks retreated on concern rising inflation will limit growth, outweighing gains in oil and steel producers. The index trades at 10.6 times analysts’ earnings estimates, according to weekly data compiled by Bloomberg. That compares to a ratio of 13.7 for the Shanghai Composite Index, 7.2 for Russia’s Micex, and 16.7 for India’s Sensex.