Bovespa Futures Rise as Commodity Gains Boost View for Producers

Bovespa-stock index futures rose, signalling the benchmark equity gauge will snap a three-day slump, as higher commodities prices boosted the outlook for Brazilian raw-material producers.

Iron-ore producer Vale SA may increase as metals climbed while investors awaited a policy announcement from the European Central Bank. Natura Cosmeticos SA, Brazil’s biggest cosmetics maker, might be active after reporting fourth-quarter net income of 257.3 million reais ($129.5 million), missing analysts’ estimates. Sugar-cane processor Cosan SA Industria e Comercio may be active after quarterly profit exceeded forecasts.

Bovespa-index futures climbed 0.4 percent to 59,155 at 9:08 a.m. in Sao Paulo. The real advanced 0.2 percent to 1.9879 per dollar. The Standard & Poor’s GSCI index of 24 raw materials gained 0.4 percent.

Consumer prices as measured by the IPCA index rose 0.86 percent in January, the national statistics agency said today in Rio de Janeiro, which compares with the median forecast for an increase of 0.83 percent among 41 economists surveyed by Bloomberg. Annual inflation quickened to 6.15 percent from 5.84 percent in December, compared with an estimate of 6.14 percent from 23 economists surveyed.

Apparel retailer Guararapes Confeccoes SA may be active after saying it plans to open 40 stores a year in next four years. Tim Participacoes SA, Brazil’s second-largest wireless carrier by market share, may move after Il Sole 24 Ore reported that the company may name Rodrigo Abreu, head of Cisco Brazil, chief executive officer.

Linx IPO

Linx SA, a Brazilian information technology company, said yesterday that it’s raising as much as 527.9 million reais in an initial public offering that is the country’s first in six months.

The Bovespa 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 that 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 12 percent.

Brazil’s benchmark equity gauge trades at 10.8 times analysts’ earnings estimates for the next four quarters, compared with 9.7 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 7.17 billion reais yesterday, which compares with a daily average of 7.36 billion reais this year through Feb. 5, according to data compiled by 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 at papadopoulos@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.