Bovespa-Index Futures Rise as China Optimism Boosts Export View

Bovespa-index futures gained after an increase in Chinese industrial companies’ profits boosted optimism about the economic outlook for Brazil’s top trading partner.

Banco Bradesco SA, Brazil’s second-biggest bank by market value, may be active after reporting fourth-quarter profit that trailed analysts’ estimates. Shopping-mall owner BR Malls Participacoes SA may move after Credit Suisse Group AG lowered its recommendation to the equivalent of hold.

Bovespa-index futures climbed 0.4 percent to 61,420 at 9:08 a.m. in Sao Paulo. The real strengthened 0.1 percent to 2.0271 per dollar. Chinese stocks rose after the National Bureau of Statistics said profits of industrial companies increased 17.3 percent in December. Earnings for the full year gained 5.3 percent.

Bradesco said today in a statement that adjusted net income, which excludes one-time items, climbed to 2.92 billion reais ($1.44 billion) from 2.77 billion reais a year earlier. That compares with the 2.96 billion-real median estimate of eight analysts surveyed by Bloomberg.

Brazil’s gross domestic product will expand 3.10 percent this year, according to the median forecast in a Jan. 25 central bank survey of about 100 economists published today. They had forecast expansion of 3.19 percent a week earlier.

Bull Market

The Bovespa (IBOV) entered a bull market on Jan. 3 after rising 21 percent from last year’s low on June 5 as stimulus from central banks around the world eased concern economic growth might miss expectations while borrowing costs at a record low in Brazil boosted equity demand. The index has since pared its advance to 17 percent.

Brazil’s benchmark equity gauge trades at 11.3 times analysts’ earnings estimates for the next four quarters, compared with 10.9 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume of stocks in Sao Paulo was 7.14 billion reais on Jan. 24, which compares with a daily average of 7.25 billion reais in 2012, according to data compiled by the exchange. The Sao Paulo exchange was closed on Jan. 25 due to a local holiday.

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 at papadopoulos@bloomberg.net

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