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Bovespa Rises as OGX Tracks Commodities Gain on U.S. Jobs Report

Brazil’s Bovespa index headed for a fifth weekly gain, the longest winning streak in 15 months, as raw-material producers rose after a report showing employment increased more than forecast in the U.S. lifted commodities.

Oil companies Petroleo Brasileiro SA (PETR4) and OGX Petroleo & Gas Participacoes SA jumped as crude gained in New York, contributing the most to the Bovespa’s advance. Localiza Rent a Car SA, Latin America’s biggest car-rental company, rose after saying its fourth-quarter profit rose 13 percent.

The Bovespa climbed 1.1 percent to 65,278.30 at 1:07 p.m. in Sao Paulo, extending this week’s advance to 3.8 percent. Fifty-six stocks advanced today, and 11 dropped. The real weakened 0.3 percent to 1.7236 per U.S. dollar.

Brazil’s benchmark equity gauge reversed an earlier decline after data from the Labor Department showed a 243,000 increase in payrolls in January in the U.S., Brazil’s second-biggest trading partner. That exceeded all forecasts in a Bloomberg survey. The unemployment rate dropped to 8.3 percent, the lowest since February 2009.

“We haven’t heard anything negative from Europe in the past few days and news from the U.S. is positive, so the market is getting more confident that the global economy may be in better shape than we thought,” Fausto Gouveia, who helps manage about 250 million reais ($145 million) at Legan Administracao de Recursos, said by phone from Sao Paulo. “That’s good for everybody, including Brazil.”

Localiza Earnings

Localiza advanced 3.2 percent to 29.65 reais. The company said net income rose to 78.7 million reais in the fourth quarter from a year earlier, according to a regulatory filing yesterday. That compares with the median estimate of 73.7 million reais in a Bloomberg survey of six analysts.

Petrobras, as Petroleo Brasileiro is known, climbed 1 percent to 24.77 reais. OGX, the producer controlled by billionaire Eike Batista, added 2.4 percent to 17.44 reais. Oil rose for the first time in six days after the U.S. jobs report was released.

Real estate developer Multiplan Empreendimentos Imobiliarios SA (MULT3) added 1.8 percent to 42.45 reais after saying in a statement on its website it sold Morumbi Business Center, an office building in Sao Paulo, to Oracle do Brasil Sistemas Ltda., a unit of Oracle Corp., for 165 million reais.

Gafisa SA (GFSA3), Brazil’s third-biggest homebuilder by revenue, fell 1.3 percent to 5.28 reais after surging 19 percent in the previous three sessions. The company said in a filing yesterday it’s studying an acquisition offer from billionaire investor Sam Zell and Brazilian private equity firm GP Investments Ltd. (GPIV11)

Relative Value

The Bovespa has advanced 15 percent this year, after slumping 18 percent in 2011, buoyed by Brazil’s interest-rate cuts, signs of growth in the U.S. and renewed optimism Europe may be closer to solving its debt crisis. The gauge trades at 10 times analysts’ earnings estimates, in line with the ratio for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.

Foreign investors poured 7.17 billion reais into Latin America’s largest equity market in January, according to data compiled by Bloomberg. They pulled 1.35 billion reais from the Bovespa in 2011.

Traders moved 8.08 billion reais in stocks in Sao Paulo yesterday, data compiled by Bloomberg show. That compares with a daily average of 6.17 billion reais this year through Jan. 30, according to data from the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

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

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