Brazilian Stock Movers: Redecard, Vale, Lojas Renner, Hering
The Bovespa (IBOV) Index rose 0.9 percent to 54,513.16.
Redecard SA (RDCD3) (RDCD3 BS), Brazil’s No. 2 card-payment processor, slid 6.4 percent to 30.05 reais, a four-month low, as shareholders voted on whether to seek a second appraisal related to Itau Unibanco Holding SA (ITUB4)’s offer to buy the remaining stock it doesn’t own. Itau is offering 35 reais a share. Lazard Asset Management LLC, Redecard’s second-biggest holder, said NM Rothschild & Sons undervalued the company. Shareholders approved a new evaluation at today’s meeting, according to a regulatory filing after the close of trading.
Vale SA (VALE), the world’s largest iron-ore producer, rose 2.6 percent to 35.70 reais, the most in five weeks, after executives told reporters at an event the company expects China’s economy to grow almost 8.5 percent this year and iron ore prices to recover in the second half of 2012 after increased supplies from Australia and Brazil caused a recent decline.
Usinas Siderurgicas de Minas Gerais (USIM5 BS), Brazil’s second-largest steelmaker by output, fell 1.3 percent to 9.39 reais after the newspaper Valor Economico said it is dismissing as many as 250 employees in Ipatinga, Minas Gerais.
Teka-Tecelagem Kuehnrich SA (TEKA4) (TEKA4 BZ), a textile company, rose 6.2 percent to 1.20 reais after saying in a regulatory filing that its board will propose at the next shareholders meeting a 5-for-1 share split.
Lojas Renner SA (LREN3 BS) rallied 3.5 percent to 58.60 and Cia. Hering (HGTX3) gained 1.7 percent to 42.80 reais as traders stepped up bets on lower interest rates after a report showed Brazil’s economy unexpectedly contracted in March. Brazil’s seasonally adjusted economic activity index fell 0.35 percent in March from the previous month, the central bank said today. Economists expected a 0.49 percent increase, according to the median of 18 estimates in a Bloomberg survey.
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