The Brazilian stocks declined following a lackluster performance on Wall Streeton Friday. Brazilian markets had a generally subdued session as traders said investors are focusing on key economic data due next week in the absence of any significant news on Friday. The Sao Paulo Stock Exchange's Bovespa index fell 1.23 percent to end at 24,522.4 points as the Dow Jones industrial average declined 0.2 percent. Shares of Tele Norte Leste Participacoes (Telemar), which makes up about 11 percent of the index, slipped 0.75 percent to 35.93 reais. In the foreign exchange market, the Brazilian real erased early losses to strengthen 0.29 percent to 2.441 reais per dollar, its strongest level since May 8, 2002. Traders said dollars coming into the country from exports surged into the market in the afternoon.
"Investors were on the sidelines, trading volume was very low," said Jorge Knauer, head of currencies at Prosper bank. "The market swung back and forth according to dollar flows."
Next Tuesday and Friday, investors will be closely watching the release of minutes from monetary policy meetings of the US Federal Reserve and Brazilian central bank, respectively.
The Bovespa index has fallen 6.4 percent so far this year as the central bank's rate hikes put pressure on stocks, the last rate increase being on Wednesday.