Brazil's GPA shares fall after CFO resigns

About this update from Companhia Brasileira De Distribuicao

GPA BMFBOVESPA:PCAR3 shares fall about 5% on Friday after the Brazilian food retailer said its Chief Financial Officer Rafael Russowsky had resigned.** Alexandre Santoro, who was announced this week as GPA's new CEO, will also serve as CFO on an interim basis.** JPMorgan analysts say the change is negative, noting Russowsky was spearheading GPA's de-leveraging program and that the firm "continues to carry high leverage levels".** They also say Santoro will take the CFO job "with limited time in the company, and in the middle of a new wave of cost-cutting initiatives, potentially putting execution at risk".** Shares in GPA fall 4.8% to 3.79 reais ($0.71) in afternoon trade, leading losses on Brazil's benchmark stock index Bovespa BMFBOVESPA:IBOV, which rises some 0.6%.** GPA shares fell to 3.71 reais earlier in the session.($1 = 5.3651 reais)

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