Most Brazilian Stocks Rise as Builders’ Gain Offsets Petrobras

Most Brazilian stocks climbed as Brookfield Incorporacoes SA (BISA3) led homebuilders higher after a report showed slower-than-forecast inflation in Brazil, outweighing losses by commodities producers.

Retailers also advanced as B2W Cia. Digital rose to a two-week high. Voting shares of Petroleo Brasileiro SA, the state-run oil producer, fell the most on the benchmark index as crude sank 2.2 percent amid speculation that the Federal Reserve will scale back stimulus efforts.

The Ibovespa slipped 0.1 percent to 56,199.22 at 4:23 p.m. in Sao Paulo, erasing an advance of as much as 1.5 percent. Thirty-eight stocks advanced while 32 dropped. The real fell 0.4 percent to 2.0460 per dollar.

“We’re seeing some positive signs coming from the Brazilian economy, which is one of the reasons why we’re seeing the outlook for equities getting a bit better when compared with what we had two or three months ago,” Rogerio Freitas, a partner at hedge fund Teorica Investimentos, said by phone from Rio de Janeiro.

Homebuilders and retailers advanced after the national statistics agency reported that the IPCA-15 price index, a gauge of consumer prices, increased 0.46 percent in the month through mid-May after rising 0.51 percent in the previous period. The median forecast of 35 economists surveyed by Bloomberg was for a 0.49 percent increase. The annual inflation rate fell to 6.46 percent from 6.49 percent at the end of April.

Brookfield added 4.4 percent to 1.90 reais. B2W climbed 3.4 percent to 11.39 reais.

Petrobras Declines

Voting shares of Petrobras slumped 3.5 percent to 18.69 reais. The Ibovespa pared gains as Fed Chairman Ben S. Bernanke said the central bank could “step down” the pace of asset purchases at the next few meetings if the labor market continues to improve.

“Markets didn’t react well to Bernanke’s remarks,” Joao Pedro Brugger, who helps manage 330 million reais at Leme Investimentos, said by phone from Florianopolis, Brazil. “This issue may weigh on the Ibovespa for some time, but it may not last long. Brazilian equities have underperformed most markets today, so room for further losses may be limited.”

To contact the reporters on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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