Petrobras reverses course and declines, dragging down the Ibovespa.

By Paula Barra

SÃO PAULO - After strong gains at the start of Tuesday's session, steel companies lost momentum, along with Vale's shares, which were already trading in negative territory, but intensified their decline starting at 12:30 PM (Brasilia time). This movement follows a surge the previous day, when expectations of stimulus in China led these stocks to be among the biggest gainers on the Ibovespa. Similarly, Petrobras shares, which traded positively throughout the morning, turned downwards. Earlier, more favorable prospects that the state-owned company's audited financial statements would be released soon had caused its shares to rise. See below what is highlighted on the Stock Exchange today, according to the 13:28 PM (Brasilia time) quote:

Steel companies and Vale: Shares in the steel sector lost momentum along with the market, which had been euphoric with expectations of stimulus in China. Today, the Chinese Consumer Price Index was released, showing a year-on-year increase of 0,8% in January, well below the last five years. The CPI ended 2014 with a 1,5% increase, well below the 3,5% target set by Beijing.

On the stock exchange, Usiminas (USIM5, R$ 3,96, +2,86%) was still among the biggest gainers on the Ibovespa, but CSN (CSNA3, R$ 5,01, +0,30%) shares were losing momentum, while Gerdau (GGBR4, R$ 10,06, -1,66%) and Metalúrgica Gerdau (GOAU4, R$ 10,63, -1,677%) were trading lower. Vale (VALE3, R$ 20,57, -4,72%; VALE5, R$ 17,88, -3,92%) was also registering declines. Analyst Flávio Conde had stated earlier that the rise in these stocks was unsustainable and it might be time to take profits. 

Petrobras (PETR3, R$ 9,05, -1,63%; PETR4, R$ 9,15, -1,40%) Petrobras shares reversed course after a positive start due to the possibility of the release of the audited financial statements. A Bloomberg article indicated that Finance Minister Joaquim Levy would help find a solution for the state-owned company's balance sheet, identifying a methodology for the accounting write-down. There was talk today of a write-down of R$ 10 billion to R$ 20 billion. Also on the radar is news that the Presidential Palace wants Guido Mantega and Miriam Belchior removed from the company's board of directors, according to a report in the newspaper O Globo.

BB Seguridade (BBSE3, R$ 29,85, -0,60%) The company controlled by Banco do Brasil again registered strong numbers in the fourth quarter, with a net profit of R$ 1,14 billion (+26% compared to 4Q13), against the average of analysts compiled by Bloomberg of R$ 894,7 million. In addition, the company's board of directors approved the payment of R$ 1,57 billion in dividends. For XP Investimentos, the operating result was positive, with growth in all business lines. The only indicator that came in below guidance was the Life, Housing and Rural segment, however all the others more than compensated.

Banco do Brasil (BBAS3, R$ 22,36, -0,45%) Banco do Brasil loses strength along with the market a day before the release of its fourth-quarter earnings report. It is the last of the major banks to report results. The figures will be released before the opening of trading tomorrow.

Education stocks are falling sharply again on the stock exchange. This trading session marks the third consecutive decline for Anima (ANIM3, R$ 16,55, -5,10%) and Estácio (ESTC3, R$ 15,78, -3,30%), accumulating losses of 19,5% and 11,4%, respectively. Kroton (KROT3, R$ 10,54, -1,50%) and Ser Educação (SEER3, R$ 12,96, -7,50%) offered a respite yesterday but resumed their decline today.

On the radar, the Ministry of Education said today that it will not waive the requirement of an average score of 450 points on the ENEM (National High School Exam) to access FIES (Student Financing Fund). According to the executive secretary of the MEC, Luiz Cláudio Costa, the FIES system will be open for new contracts "well before April, we are working with a matter of days," he said without specifying a precise date.

Hypermarcas (HYPE3, R$ 17,61, +1,32%) The company said yesterday that it will fully pass on the IPI (Tax on Industrialized Products) to prices starting in May. The company will also make an adjustment in April to reflect inflation and is also considering a third price increase in its consumer division in the second half of the year.

BM&FBovespa (BVMF3, R$ 9,43, +0,21%) The stock exchange is expected to release its results after the close of trading today. Analyst estimates compiled by Bloomberg point to a net profit of R$ 391,2 million in the fourth quarter.

Qualicorp (QUAL3, R$ 22,75, +2,25%) After four consecutive days of declines, accumulating losses of 17,5%, Qualicorp shares are taking a breather on the stock exchange and are trading higher. The shares fell on news that there will be changes to the rules for individual health plans, to increase competition. The company even tried to reverse the pessimistic scenario on Thursday, stating that there had been a misinterpretation of the article, saying that there will be no changes to the readjustment rules for individual plans, but the market continued selling the shares. The truce only came today.

Abril Educação (ABRE3, R$ 11,88, -0,50%) After yesterday's surge, which brought Abril Educação shares closer to the R$ 12 level, the shares are trading slightly lower today. The expectation is that the assets will trade near this level until the completion of the takeover bid (OPA) by Thunnus Participações, a company owned by investment funds managed by Tarpon Investimentos. Yesterday, it announced it will take control of the company, paying R$ 12,33 per ordinary share. It's worth mentioning that this value will extend to other minority shareholders since the share has the well-known "tag along" right.

São Martinho (SMTO3, R$ 34,35, +1,33%) São Martinho reported a net profit of R$ 53,5 million in the third fiscal quarter of 2015 and net revenue of R$ 594,2 million.

Santos Brasil (STBP11, R$ 13,01, -2,91%) Santos Brasil reported a net profit of R$ 18,1 million in the fourth quarter of 2014, below market expectations of R$ 56,1 million, according to a Bloomberg compilation.

Localiza (RENT3, R$ 35,20, +0,23%) Localiza had its target price raised from R$ 35 to R$ 37,50 by BB Investimentos. Yesterday, the company released its results, with a 6,8% increase in its net profit in 2014, to R$ 410,6 million.