The Bovespa (IBOV) index gained for the first time in three days as Brazilian producers followed a commodities rally amid optimism about the outlook for the global recovery.
Vale SA (VALE3) contributed most the gauge’s advance as a gain in metal prices outweighed concern about production after the mining company said it halted output at three plants. Oil companies OGX Petroleo & Gas Participacoes SA and Petroleo Brasileiro SA followed crude higher.
The Bovespa gained 0.4 percent to 58,856.14 at 2:08 p.m. in Sao Paulo. Forty stocks rose on the index while 27 sank. The real rose 0.2 percent to 2.0188 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials added 1.6 percent after American jobless claims increased less than economists estimated and the European Central Bank said it is ready to buy government bonds once necessary conditions are met.
“It’s good to see economic data that weren’t as bad as we expected, and also Europe taking steps to deal with its problems,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. “All this news helps to reduce risk aversion, giving some breathing room for the Bovespa.”
Vale rose 1.5 percent to 35.21. The stock earlier dropped as much as 1.5 percent after the company said it would temporarily halt output at its Sao Luis, Tubarao 1 and Tubarao 2 plants.
Petrobras, as Petroleo Brasileiro is known, advanced 0.7 percent to 22.49 reais. OGX added 0.9 percent to 5.91 reais.
The Bovespa has climbed 12 percent from this year’s low on June 5 as stimulus from central banks around the world eased economic concerns and borrowing costs at a record low in Brazil boosted demand for equities. The index trades at 13.4 times analysts’ earnings estimates for the next four quarters, which compares with the ratio of 11.4 times for MSCI Inc.’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume was 5.75 billion reais ($2.84 billion) in stocks in Sao Paulo yesterday, which compares with a daily average of 7.31 billion reais this year through Oct. 2, according to data compiled by the exchange.
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