Brazil’s sovereign wealth fund has started reducing its stake in Banco do Brasil SA as the government prepares to possibly tap the fund to help meet its fiscal target, said a person with direct knowledge of the matter. Shares dropped the most on the Ibovespa index.
The sovereign fund sold 1 million shares of Banco do Brasil last month, data compiled by Bloomberg show. While the initial share dump is small — worth about 23 million reais ($7 million) — it marks the beginning of what could be a bigger reduction of the fund’s 2.66 billion-real stake in the bank, according to the person, who asked not to be identified because the government’s plans aren’t public.
Brazil Energy Insight 
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