SHARES in Petroleo Brasileiro fell the most in six years as President Dilma Rousseff’s re-election dashed hopes of repealing price and project restrictions that have made it the world’s most indebted oil producer.
The shares had tumbled 12 percent to 14.41 reais (R22) by 12.13pm in Sao Paulo yesterday, leading losses on the MSCI Emerging Markets index, which retreated 0.9 percent.
Petrobras, as the Rio de Janeiro-based Petroleo Brasileiro is known, now trades at 6.3 times its forecast earnings, the cheapest since March.
“Today’s losses may get worse in the next few days,” Sandro Fernandes, a trader at brokerage firm Geraldo Correa, said. “Shares may move closer to 12 reais soon.” – Bloomberg