Ibovespa Futures Rise as Commodities Gain Boosts Export Outlook

Ibovespa futures advanced, a sign the equity index may snap a two-session drop, as commodities from metals to oil rose, boosting the outlook for Brazilian raw-material producers.

Usinas Siderurgicas de Minas Gerais SA (USIM3) may move after JPMorgan Chase & Co. raised its recommendation on the steelmaker to the equivalent of hold. Electricity distributor Cia. Paranaense de Energia may be active after Brazil’s regulator approved a rate adjustment.

Ibovespa futures contracts expiring in August added 0.5 percent to 45,000 at 9:16 a.m. in Sao Paulo. The real fell 0.2 percent to 2.2635 per dollar. The Standard & Poor’s GSCI index of 24 raw materials advanced 0.6 percent. Commodities producers account for about 37 percent of the Ibovespa’s weighting.

Copper paced gains by industrial metals after data showed imports of the commodity into China reached a nine-month high. Crude climbed on speculation that shrinking U.S. stockpiles indicate increased demand in the world’s biggest oil consumer.

Brazil’s benchmark equity gauge has slumped 26 percent this year, the worst performer among the top 20 biggest equity markets tracked by Bloomberg. The Ibovespa trades at 11.2 times analysts’ earnings estimates for the next four quarters, compared with 9.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume for stocks in Sao Paulo was 4.93 billion reais on July 8, which compared with a daily average of 7.88 billion reais this year through July 4, according to data compiled by the exchange. Brazilian markets were closed yesterday for a holiday.

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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