Ibovespa Futures Gain as Higher Commodities Bolster Producers

Ibovespa futures advanced, a sign the equity gauge may rise for a third day, as a jump in commodities bolstered the outlook for Brazilian producers.

Gerdau SA, Latin America’s largest steelmaker, may move after Goldman Sachs Group Inc. raised its recommendation to buy. MMX Mineracao & Metalicos SA, the iron-ore producer controlled by the billionaire Eike Batista, may be active after saying in a regulatory filing it’s in talks to sell either a stake in the company or some assets.

Ibovespa futures contracts expiring in August rose 0.6 percent to 47,420 at 9:17 a.m. in Sao Paulo. The real climbed 0.3 percent to 2.1792 per dollar. The Standard & Poor’s GSCI index of 24 raw materials advanced 0.6 percent. U.S. stock-index futures advanced.

“Brazilian equities will probably rise again as the external outlook improves,” Banco Bradesco SA’s economic team wrote in a note to clients today.

The Ibovespa slumped into a bear market on June 11 after falling more than 20 percent from this year’s peak on Jan. 3. It has since extended those losses to 26 percent. Brazil’s benchmark equity gauge trades at 11.8 times analysts’ earnings estimates for the next four quarters, compared with 10 for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume for stocks in Sao Paulo was 6.86 billion reais yesterday, compared with a daily average of 7.93 billion reais this year through June 25, 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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