The Ibovespa fell, paring a weekly advance, as wireless carrier Tim Participacoes SA sank on speculation Italy will try to block a sale or breakup of the company.
The MSCI Brazil/Telecommunication Services Index was the worst performer among 10 industries. For-profit college operator Kroton Educacional SA (KROT3) climbed after saying it has received bids for its Uniasselvi unit.
The Ibovespa slipped 0.2 percent to 53,795.09 at 10:59 a.m. in Sao Paulo, reducing its weekly gain to 1.2 percent. Trading volume on the index was 38 percent lower than the average for this time of the day in the past month. The U.S. stock market is closed for a holiday and the BM&FBovespa will end today’s session 2 1/2 hours earlier than usual, before Brazil’s World Cup game.
“We have some corporate news weighing on some individual stocks, such as Tim,” Pedro Galdi, the chief analyst at brokerage firm SLW Corretora, said by phone from Sao Paulo. “On a day when volumes are as low as today, it doesn’t take much to move a stock.”
Tim tumbled 4.3 percent to 11.92 reais. Italy is discussing a measure to give the government power to block an eventual sale or breakup of Telecom Italia SpA’s Brazilian unit, according to three people with knowledge of the matter.
Italian officials may broaden a “golden power” decree adopted in June that gives the government the right to veto deals in industries deemed to be of national interest to include communication networks owned by Italian companies abroad, the people said, who asked not to be identified because the discussions are confidential.
