Brazil's stocks closed lower on Friday after shedding early gains in volatile trade. The Bovespa index of the Sao Paulo stock exchange fell 0.57 percent to 35,789 points, after a 4.7 percent surge on Thursday. Shares of Unibanco and Itau fell after UBS Pactual slashed by 12 percent on average its estimates for 2009 earnings for major Brazilian banks.
UBS Pactual said it rated Bradesco shares neutral because the bank had limited chances to grow with take-overs. Bradesco, however, rose 0.8 percent to 23.95 reais. Real estate developer Cyrela tumbled 4.6 percent to 7.40 reais. The company said,late on Thursday its third-quarter profit fell nearly 20 percent because of an increase in costs to sell its upscale apartments.
The company also slashed by 25 percent the number of new developments in 2008 because of "the currency international outlook and uncertainties on the depth of the impact in Brazil's economy." Brazil's No 2 airline Gol Linhas Aereas and local steelmaker CSN are due to report quarterly earnings after markets close.
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