By Paul Kiernan
RIO DE JANEIRO--Brazilian stocks snapped a three-session winning
streak and closed lower Friday as investors awaited results of a
new public-opinion poll on the country's October presidential
elections.
The market's benchmark Ibovespa index of most-traded stocks fell
0.2%, or 118.02 points, to close at 60681.98. Trading volume was
heavy at 9.09 billion Brazilian reais ($4.05 billion).
Brazil's real exited active trading Friday at BRL2.2424 to the
dollar, according to Tullett Prebon via FactSet, slightly stronger
its Thursday close of RL2.2444.
The stock market was weighed down by heavyweight mining company
Vale SA, shares of which tumbled 1.8% to BRL25.00. The firm has
seen its market value drop in recent days alongside prices for iron
ore, its main cash generator, which fell this week to a five-year
low on concerns about oversupply and weak demand from China.
Investors are also keeping a close eye on opinion polls. The
Ibovespa has risen by more than one-third since mid-March on hopes
that left-leaning President Dilma Rousseff will lose her bid for
re-election. Her chances have taken a hit in the past two weeks by
the sudden rise of opposition candidate Marina Silva, who is now
seen defeating Ms. Rousseff in a likely runoff.
Two polls this week, by Ibope and Datafolha, showed Ms. Silva
with a slightly smaller lead than before. A third is due out
Saturday.
"The market is going on standby while the electoral panorama
shapes up," said Bruno Goncalves, an analyst at Alpes brokerage in
Sao Paulo. "Political change could bring about some excitement, and
improve consumer and business confidence. But no one is denying
that next year will be a bad year for the economy, no matter who
wins."
Shares of state-run oil company Petrobras edged 0.1% higher to
close at BRL22.82, while telecommunications firm Oi SA was the
biggest gainer, rising 4.6% to BRL1.60.
Shares in meatpacking giant JBS fell 3.7% to BRL9.77 and
state-owned Banco do Brasil fell 1.6% to BRL34.20.
Write to Paul Kiernan at paul.kiernan@wsj.com