Fibria Rises on Pulp Gains Before Share Results: Sao Paulo Mover
Fibria Celulose SA (FIBR3), the world’s largest pulp producer, rallied on rising prices for the raw material before the release of results of a global share sale.
Fibria increased 6.7 percent to 16 reais at the close in Sao Paulo, the biggest one-day gain since Aug. 15. The benchmark Bovespa added 0.7 percent.
“Data helps to make investors more optimistic about future results of the companies in this industry,” Fausto Gouveia, who helps manage 380 million reais ($202 million) at Legan Administracao de Recursos in Sao Paulo, said in a phone interview.
Hardwood pulp prices have risen because of increased demand in China, work stoppages in Europe and operating problems at some Asia plants, according to Rodrigo Fernandes and Renato Damaso Maruichi, analysts at Banco Fator in Sao Paulo.
Fibria plans to sell as many as 91.2 million new voting shares in a global public offering, according to a prospectus sent to Brazil’s securities regulator.
Suzano Papel e Celulose, which competes with Fibria, increased 1.4 percent to 7.50 reais.
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