Brookfield Incorporacoes SA climbed the most on the gauge, leading gains among homebuilders. OSX Brasil SA (OSXB3), the shipbuilder owned by billionaire Eike Batista, rallied after saying it hired Credit Suisse Group AG for a possible sale of assets. Consumer-health products manufacturer Hypermarcas SA (HYPE3) rose after JPMorgan Chase & Co. raised the stock to the equivalent of buy.
The Ibovespa added 0.5 percent to 47,656.92 at the close of trading in Sao Paulo, extending its four-day jump to 4.7 percent. Forty-three of the gauge’s 71 stocks rose. The real climbed 0.1 percent to 2.2243 per dollar at 5:33 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials rose 0.7 percent as a U.S. report showed manufacturing in the Philadelphia region expanded more than forecast.
“The Ibovespa is tracking the better mood in the global markets after economic data in the U.S. were better than expected,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. “It’s been a while since we last saw stocks rising for four straight days. We could be at the beginning of a more positive trend.”
Brookfield surged 7.4 percent to 1.74 reais, the biggest one-day gain since Sept. 13. PDG Realty SA Empreendimentos e Participacoes jumped 4.3 percent to 1.93 reais.
JBS advanced 4.7 percent to 6.88 reais, the highest level since June 7. OSX climbed 4.2 percent to 1.24 reais. Hypermarcas gained 3.1 percent to 16.40 reais.
The Ibovespa earlier today dropped as much as 0.7 percent after clothing retailer Cia. Hering (HGTX3) said sales at stores open at least a year fell 1.2 percent in the second quarter from a year earlier.
“Companies are beginning to report second-quarter earnings, and we don’t expect very exciting numbers from industries that depend more on domestic consumption,” Gustavo Mendonca, who helps manage 1 billion reais as an economist at Saga Capital, said by phone from Rio de Janeiro. “These companies will probably report weaker sales, which reflect some problems we’re seeing in Brazil, including slower growth and higher inflation.”
Analysts covering Brazil reduced their 2013 growth forecast for nine straight weeks to 2.31 percent, according to a July 12 central bank survey of about 100 economists.
Hering climbed 0.3 percent to 30.30 reais after earlier today slumping as much as 3.1 percent.
Banco Bradesco SA, Brazil’s second-largest bank by market value, declined 1.3 percent to 28.22 reais after Exame magazine reported on its website that the lender had “billionaire losses” on swap rate investments in the second quarter.
Exame didn’t say where it got the information. Bradesco denied the report in a e-mailed statement.
The Ibovespa has slumped 22 percent this year through yesterday, wiping out $233 billion from the value of Brazilian equities, according to data compiled by Bloomberg. Brazil’s main equity gauge trades at 11.9 times analysts’ earnings estimates for the next four quarters, compared with 10.3 for the MSCI Emerging Markets Index of 21 developing nations’ equities.
Trading volume for stocks in Sao Paulo was 5.93 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.79 billion reais this year through July 13, according to data compiled by the exchange.
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