Brazil's stock market fell on Friday as lower oil prices dragged down heavyweight Petrobras and not even the prospect of US government aid for US automakers managed to take stocks out of the doldrums. The Bovespa index of the Sao Paulo stock exchange shed 1.02 percent to 39,131.23 points.
It earlier traded in positive territory as some telecoms rose after Brazil's telecommunications regulator Anatel approved late on Thursday the take-over of Brasil Telecom by larger rival Oi. The broader market losses came despite the US government announcing that it would extend a $17.4 billion lifeline to automakers buckling under falling consumer demand in the face of a yearlong recession.
On the stock exchange, Petrobras fell 0.64 percent to 23.35 reais as oil prices dropped to $33.87 a barrel. Mining giant Vale also lost 0.43 percent to 25.20 reais. Financial stocks also struggled amid worries over global economic growth. Bradesco, Banco Itau and Unibanco were down between 4.47 and 2.98 percent.
In the telecoms sector, shares in Oi rose 0.87 percent to 35.75 reais after its take-over of Brasil Telecom was approved with some restrictions by Anatel. The take-over, valued at around 13 billion reais taking into consideration an offer for Brasil Telecom minority shareholders, was announced in April.
Brasil Telecom Participacoes fell 2.63 percent to 20.00 reais. Interest rate futures were broadly higher, tracking the rise in the US dollar against the local currency. They fell sharply in recent sessions on expectations the central bank will cut borrowing costs in January.