Bovespa Futures Rise as Commodities’ Gain Boosts Export Outlook

Bovespa-index futures advanced, a sign Brazil’s equity index may gain for a second session, as rising commodities prices boosted the outlook for the nation’s raw material exporters.

Card-payment processor Cielo SA may be active after it was raised to the equivalent of buy at Credit Suisse Group AG. Duratex SA, a Brazilian maker of wood panels and bathroom fixtures, may move after posting adjusted profit of 131.3 million reais ($66.6 million) in the fourth quarter, beating analysts’ estimates, according to data compiled by Bloomberg.

Bovespa-index futures added 0.4 percent to 57,190 at 9:06 a.m. in Sao Paulo. The gauge posted its fifth straight weekly drop last week amid rekindled concern a slowing global economy will pare demand for Brazilian exports and on bets the nation’s policy makers will lift borrowing costs to curb inflation, which could drive investors away from riskier assets such as equities.

The Standard & Poor’s GSCI index of 24 raw materials jumped 1.1 percent, poised for its biggest one-day gain in two months, and the MSCI All-Country World Index added 0.6 percent on speculation Japan may appoint a central bank governor who favors stimulus and as investors awaited the result of Italy’s parliamentary elections.

Consumer prices in Sao Paulo as measured by the IPC-Fipe index increased 0.52 percent in the four weeks ending Feb. 21, a report today from the Foundation Economics Research Institute showed. That compares with the median estimate of 0.63 percent from 13 economists in a Bloomberg survey.

The Bovespa (IBOV) has dropped 10 percent from this year’s high on Jan. 3, while the MSCI BRIC Index (MXBRIC) of shares in Brazil, Russia, India and China has slid 3.5 percent over the same period. Brazil’s benchmark equity gauge trades at 11 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 8.94 billion reais on Feb. 22, which compares with a daily average of 7.47 billion reais this year through Feb. 21, 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

Press spacebar to pause and continue. Press esc to stop.

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.