Ibovespa Rises as B2W Gains After Brazil Retail Sales Increase

The Ibovespa (IBOV) climbed as consumer stocks gained after Brazilian retail sales increased more than analysts forecast in March, easing concern that the economic recovery is faltering.

Homebuilder Rossi Residencial SA (RSID3) jumped after posting first-quarter sales that exceeded analysts’ estimates. B2W Cia. Digital rose the most in a week, leading gains among retailers. Oil company HRT Participacoes em Petroleo SA advanced after reporting a quarterly loss that was less than analysts had forecast. Iron-ore producer MMX Mineracao & Metalicos SA led declines by raw-material producers as commodities declined.

The Ibovespa added 0.5 percent to 54,922.03 at 11:51 a.m. in Sao Paulo. Forty-eight stocks gained on the gauge while 22 dropped. The real depreciated 0.2 percent to 2.0254 per dollar.

“Retail sales came in better than expected, which helps to push equities higher,” Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview.

Brazilian retail sales rose 4.5 percent in March from a year earlier, the national statistics agency reported today. The median forecast of 28 analysts surveyed by Bloomberg was for a 3.6 percent increase.

B2W climbed 1.7 percent to 10.80 reais.

Rossi rose 7.8 percent to 3.44 reais. The company reported sales of 720 million reais in the first quarter, which compares with the average estimate of 688.6 million reais among eight analysts surveyed by Bloomberg.

HRT, MMX

HRT increased 3 percent to 3.73 reais.

MMX sank 1.9 percent to 3.69 reais as the Standard & Poor’s GSCI index of 24 raw materials slipped 1.2 percent.

Brazil’s benchmark equity gauge has lost 9.7 percent this year, the worst performer after Colombia’s IGBC among 19 major emerging markets, according to data compiled by Bloomberg. The Ibovespa trades at 12.2 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 8.05 billion reais yesterday, compared with a daily average of 7.71 billion reais this year through April 30, 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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