London-Listed Brazil equity ETF down 9.7 pct on election result

lunes 27 de octubre de 2014 06:05 GYT
 

LONDON Oct 27 (Reuters) - A Brazilian equity exchange traded fund (ETF) listed in London fell 9.7 percent on Monday after President Dilma Rousseff won the weekend election over pro-business rival Aecio Neves by a slim margin.

The Brazil MSCI i-shares ETF hit seven-month lows, albeit in thin turnover. Earlier in the day, the Tokyo-listed Ibovespa exchange traded fund (ETF) dropped almost 7 percent reflecting investors' disappointment at the result.

Left-wing Rousseff struck a conciliatory tone in her victory speech late on Sunday, pledging to work with political adversaries and business leaders to boost growth.

"The (offshore) move is an indication that the local market reaction will be negative; from a market perspective Rousseff is clearly bad news," said Stanislava Pravdova, an analyst at Danske Bank in Copenhagen.

"Over her last term she did nothing in terms of reform and we can't really expect her to turn pro-business now." (Reporting by Sujata Rao, editing by Nigel Stephenson)