Why Petroleo Brasileiro Petrobas (PBR) Stock Continues to Decline Today

NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobas SA (PBR) are falling by 4.83 to $13.99 in mid-morning trading on Tuesday, as the stock continues to drop following recent Brazilian election data showing President Dilma Rousseff is leading her opponent Marina Silva in the polls by several points.

On Monday, polling firm MDA said Rousseff has 47.7% of the votes, while Silva has 38.7%. Another poll by Vox Populi showed Rousseff has a seven point lead, Reuters reported.

Many investors would prefer to see Silva as Brazil's next president as her policies have been pro-market, as compared to current president Rousseff, who has been blamed by investors for creating policies that have caused the Brazilian economy to slow, Reuters added.

The first wave of elections in Brazil will be held Sunday Oct. 5. No candidate is expected to earn more than 50% of the valid votes, which will cause a runoff round between the two candidates with the highest votes, on Oct. 26, Reuters noted.

Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

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