Petrobras shares fall 20 percent after Bolsonaro interference

Shares of the Brazilian semi-state oil company Petrobras fell more than 20 percent this Monday, the first day of opening of the financial market after the president on February 19 Jair bolsonaro will announce changes in the company, starting with his presidency, which will be in the hands of a military man.

According to public data from the São Paulo Stock Exchange, on Monday morning Petrobras common shares (PETR3) fell 20 percent, and preferred shares (PETR4) suffered a decline of 19.17 percent.

On the New York Stock Exchange, Petrobras’ ADRs (American Depositary Receipts) fell 20.3 percent at the same time, according to local press.

The falls come after Bolsonaro last week criticized the company’s pricing policy and announced, through social media, a change in the presidency.

Military General Joaquim Silva e Luna will be the new president of the oil company, replacing Roberto Castello Branco, whose term ended at the end of March.

In addition to Petrobras, state companies such as Eletrobras and the Bank of Brazil also suffer strong falls; the São Paulo Stock Exchange as a whole accumulates losses close to six percent.

Source: Sputnik