| The state-run lender, Latin America’s biggest by assets, is tumbling after Brazil’s sovereign wealth fund sold 1 million shares last month, signaling the government may be preparing to tap the fund to finance its budget deficit. With 80 percent of the fund’s assets tied up in Banco do Brasil, withdrawing cash from the account would mean dumping more shares.
“The sale is very negative for shares,” Gilberto Tonello, an analyst at Grupo Bursatil Mexicano in Sao Paulo, said in a telephone interview Monday. “What are investors going to think? If the biggest shareholder is selling, then I want to get out before it does.”..............................................Full Article: Source
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