Petrobras Shares Hit Lowest Value in 9 Years

12/09/2014 - 08h40

After reaching its highest value this year amid a fierce electoral race, Petrobras shares saw their price fall 50% in the last three months.

Between Sept. 2 and Dec. 5, the state-run company's preferred shares (non-voting) saw a 50.1% decline, going from US$ 9.4 to US$ 4.7.

The common shares, with voting rights, dropped from US$ 8.9 to US$ 4.4 (down 50.8%).

During this year, the company's preferred shares fell 28.22% until Friday (5), while common shares dropped 28.39%.

The fluctuating values of Petrobras shares this year were motivated by the electoral dispute: when voting polls showed that President Dilma Rousseff (PT) was the frontrunner, the market reacted by selling shares, mainly state.

In addition to dissatisfaction with the control of fuel prices by the government to not harm inflation in the country, Petrobras has become entangled in a series of scandals involving contractors and politicians.

Translated by JILL LANGLOIS

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