Brazil: Stocks close down 5%

[SAO PAULO] The Sao Paulo stock exchange closed down 5.2 per cent on Monday, extending its recent losses as the coronavirus pandemic continued to devastate world markets.

Brazil's Ibovespa index plunged more than seven percent in midday trading, before recovering some ground.

Latin America's largest stock exchange has now lost 47 per cent since it hit its all-time high on January 23, the day the spreading outbreak led China to place Wuhan city under quarantine.

The latest losses came despite the fact the Brazilian Development Bank (BNDES) announced Sunday night it would inject 55 billion reals (S$16.1 billion) into the economy to help save jobs threatened by the health crisis.

Brazil's government slashed its 2020 economic growth forecast last week to 0.02 per cent. Some analysts are now predicting a recession of more than four percent for the region's biggest economy.

AFP