SAO PAULO: Brazilian stocks fell on Friday as shares of meatpackers JBS SA and BRF SA slumped after federal police targeted their offices as part of an investigation into alleged bribery of food inspectors and politicians.
The probe, known as "Operation Weak Flesh," uncovered about 40 cases of meatpackers who had paid officials to overlook unsanitary practices such as processing rotten meat and running plants with traces of salmonella, police said.
Common shares in JBS fell nearly 8 percent, the biggest decline since Oct. 26, when a government agency vetoed a program to move some operations outside Brazil. Shares in BRF slumped to an almost five-year low.
Shares of education companies Kroton Educacional SA and Est?cio Participa??es SA also fell sharply on a report that top managers at Est?cio were attempting to block a sale to its larger rival Kroton.
Brazil's benchmark Bovespa stock index fell 1.8 percent. Still, the Brazilian real strengthened 0.3 percent, reflecting expectations of inflows stemming from a successful airport auction on Thursday.
Other Latin American currencies were mostly stronger, extending gains into a third day as traders predicted that the US Federal Reserve would only increase interest rates at a gradual pace in coming months.
The Mexican peso firmed 0.7 percent, while the Colombian peso strengthened 0.2 percent.
Comments
Comments are closed.