Bovespa-Futures Rise as Commodities Gain Boost Exports

Bovespa (IBOV) futures rose as higher commodities boosted the outlook for Brazilian raw-material producers and after Cyprus reached agreement on a bailout, easing concern that Europe’s debt crisis will worsen.

Homebuilder Cyrela Brazil Realty SA Empreendimentos e Participacoes may move after Credit Suisse Group AG raised its recommendation to the equivalent of hold. Competitor Tecnisa SA (TCSA3) may be active after posting a fourth-quarter loss that was wider than analysts had forecast, spurring Citigroup Inc. to downgrade the stock to sell.

Bovespa-index futures contracts expiring in April added 0.4 percent to 55,645 at 9:04 a.m. in Sao Paulo. Brazil’s real was little changed at 2.0098 per dollar.

The Standard & Poor’s GSCI index of 24 raw materials added 0.4 percent after Cyprus reached an accord with creditors, paving the way for 10 billion euros ($13 billion) of emergency loans to stave off the threat of default. The tentative agreement between Cyprus and the so-called troika of international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area.

The Bovespa has retreated 13 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index (MXBRIC) of shares in Brazil, Russia, India and China has lost 6.7 percent over the same period.

Brazil’s benchmark equity gauge trades at 11.2 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index (MXEF) of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 6.14 billion reais ($3 billion) on March 22, which compares with a daily average of 7.67 billion reais this year through March 18, 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

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