(Bloomberg) — Brazilian markets slumped after a smaller-than-expected dividend payout from state oil giant Petroleo Brasileiro SA rekindled fears of increased government intervention in the nation’s largest companies.
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The Brazilian real weakened as much as 1.1% on Friday, leading losses among major currencies around the world, while long-end swap rates climbed. The benchmark Ibovespa equity index fell to the lowest in more than three weeks, dragged down by Petrobras, which accounts for 13% of the index weightings. Shares in the firm fell more than 10%, erasing about 56 billion reais ($11 billion) in market value.
The oil producer’s lower payout adds to concerns that the nation’s left-wing government is looking to exert greater influence over the corporate sector to advance its political agenda. Analysts from Bank of America Corp. and Banco Santander SA…
