Centrais Eletricas Brasileiras SA, Brazil’s largest electric utility by revenue, rallied after reporting a first-quarter loss that was less than some analysts had estimated.
Common shares of Eletrobras, as the company is also known, surged 8.9 percent to 5.13 reais at 1:04 p.m. in Sao Paulo, the biggest intraday advance since March 28. Trading volume was 1.4 times the three-month daily average. It was the best performer on the Ibovespa equity benchmark, which rose 0.5 percent.
Brazilian utilities’ earnings have been crimped by President Dilma Rousseff’s decision last year to force them to lower rates. Eletrobras’s first-quarter net loss of 35.8 million reais ($18 million) compares with Citigroup Inc.’s estimated loss of 180 million reais, according to a research note the bank published today.
“Even weak, the numbers came out a little better than anticipated,” Pedro Galdi, an analyst at brokerage SLW, said by phone from Sao Paulo. “But we’re still going to see more negative effects of the government’s pressure in the coming quarters.”
The state-run utility’s shares slumped 20 percent this year while the Bovespa declined 9.4 percent.
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