Ibovespa Rises as Materials Producers Gain on Earnings Outlook

The Ibovespa (IBOV) rose amid speculation that this year’s worst-performing major equity index will rebound as Brazilian commodity exporters report earnings that may have been boosted by a depreciating local currency.

Petroleo Brasileiro SA, the state-controlled oil producer, advanced to a one-month high. Papermaker Suzano Papel e Celulose SA gained the most in two weeks. Cosmetics maker Natura Cosmeticos SA (NATU3) jumped after second-quarter profit exceeded analysts’ estimates.

The Ibovespa added 0.4 percent to 48,584.89 at 12:15 p.m. in Sao Paulo, with 42 of the measure’s 71 stocks advancing. The real was little changed at 2.2502 per dollar. Commodities producers, which account for about 38 percent of the benchmark’s weighting, were among the best performers even as the Standard & Poor’s GSCI index of 24 raw materials fell 0.5 percent.

“There’s optimism about exporters’ quarterly earnings that will be released in the coming weeks,” Ricardo Pinto Nogueira, the head of operations at brokerage firm Souza Barros, said by phone from Sao Paulo. Traders are speculating that the real’s 9.4 percent drop against the dollar during three-month period ended in June boosted revenue, he said.

Petrobras, as Petroleo Brasileiro is also known, gained 1.5 percent to 16.64 reais. Suzano rose 1.8 percent to 8.04 reais. Natura climbed 2.4 percent to 45.35 reais.

The Ibovespa has tumbled 20 percent in 2013, the worst performance among the 20 biggest equity benchmarks tracked by Bloomberg.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

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

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