Ibovespa Rises Sixth Day as Higher Metal Prices Bolster Usiminas
The Ibovespa gained for a sixth session, its longest winning streak in 11 months, as signs that the global economy is recovering lifted metals, boosting Brazilian raw-material producers.
Steelmaker Usinas Siderurgicas de Minas Gerais SA contributed the most to the gauge’s advance. BRF SA (BRFS3), Brazil’s biggest maker of TV dinners and frozen pizzas, gained the most in eight weeks. Oi SA plunged after the phone company reported an unexpected second-quarter loss and said it will cut dividend payments.
The Ibovespa climbed 0.3 percent to 50,753.35 at 11 a.m. in Sao Paulo. Forty-seven stocks gained on the index while 22 declined. The real was little changed at 2.3145 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index added 0.4 percent after data showed growth in Germany and France was stronger than economists forecast in the second quarter. Retail sales in the U.S. climbed for a fourth month in July, according to a separate report yesterday.
“Europe is recovering from a recession, the U.S. is giving unequivocal signs that the economy is getting stronger, and that helps to encourage investment in Brazilian equities,” Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil in Sao Paulo, said in a phone interview.
Usiminas, as Usinas Siderurgicas is also known, rose 2.1 percent to 9.56 reais. BRF added 2.2 percent to 53.23 reais.
Oi tumbled 7 percent to 4.15 reais. The company reported a net loss of 124.2 million reais in the April-to-June period, which compared with an average estimate for adjusted net profit of 186.7 million reais among six analysts surveyed by Bloomberg.
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