Brazil Stock Movers: Banco do Brasil, Cielo, T4F, Telemar Units

The following companies had unusual price changes in Sao Paulo trading. Stock symbols are in parentheses and prices are as of 4 p.m. New York time. Preferred shares are usually the most-traded class of stock.

The Bovespa Index rose 1.6 percent to 63,336.75.

Brazilian bank stocks rose as Standard & Poor’s Rating Service revised Brazil’s foreign debt rating outlook to positive. S&P, which rates Brazil BBB-, the lowest investment grade, said in a statement that the government of Latin America’s biggest economy “has reaffirmed its commitment to support recent macroeconomic gains by continuing to adjust fiscal, monetary, and credit policies.”

Banco do Brasil SA (BBAS3) (BBAS3 BS), a Brazilian state-controlled lender, gained 1.5 percent to 27.53 reais as Standard & Poor’s revised the outlook for six Brazilian banks to positive.

Cielo SA (CIEL3) (CIEL3 BS), Brazil’s biggest card-payment processor by market value, climbed 4.2 percent to 13.05 reais as JPMorgan Chase & Co. raised its 2011 profit forecast by 11 percent. Redecard SA (RDCD3) (RDCD3 BS), Cielo’s competitor, rose 2.1 percent to 23.25 reais as JPMorgan increased its 2011 profit forecast by 3 percent.

Units of Telemar Participacoes SA rallied after the parent company said it will merge the subsidiaries into one publicly traded entity that will be Brazil’s largest provider of fixed- line telephone service. Tele Norte Leste Participacoes SA (TNLP4 BS) soared 13 percent to 29.90 reais, Telemar Norte Leste SA (TMAR5) (TMAR5 BS) surged 10 percent to 60.70 reais and Brasil Telecom SA (BRTO4 BS) added 9.5 percent to 16.77 reais.

T4F Entretenimento SA (SHOW3 BS), the Brazilian live- entertainment company whose name stands for Time For Fun, advanced 1.4 percent to 14.75 reais as Banco BTG Pactual SA began coverage with a “buy” recommendation. BTG gave T4F a 12- month price target of 23 reais.

Vale SA (VALE3) (VALE5 BS), the world’s largest iron-ore producer, rose 1 percent to 44.13 reais as commodity prices rallied. Oil rose as the dollar declined, boosting commodities’ appeal.

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

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

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