| State-run Banco do Brasil SA fell the most in six weeks as the country’s sovereign-wealth fund sold some of its shares, paring gains on the Ibovespa. The lender was the biggest drag on the benchmark equity gauge. The sovereign wealth fund, which the government may tap to help meet its fiscal target, has started reducing its stake in the bank, said a person with direct knowledge of the matter, who asked not to be identified.
“That’s bad news for Banco do Brasil’s investors in the short term as flooding the market with shares will push the price lower,” Pedro Paulo Silveira, the chief economist at the brokerage TOV Corretora, said from Sao Paulo...............................................Full Article: Source
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