Santander Says Buy Brazil Builders, Retailers Amid Rising Rates

Brazilian stocks that depend most on domestic demand will likely gain even as interest rates climb, Banco Santander SA said in a note to clients today.

Santander strategist Marcelo Audi said investors should buy homebuilders such as MRV Engenharia & Participacoes SA and retailers such as Cia. Hering, saying recent underperformance was unwarranted given growth prospects.

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.