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Most Brazilian Stocks Advance as Natura Rallies on Rate Outlook

Most Brazilian stocks rose as cosmetics maker Natura Cosmeticos SA led gains in consumer companies amid speculation that policy makers will refrain from speeding up the pace of interest-rate increases.

Phone company Tim Participacoes SA rose to a seven-week high. Real estate brokerage firm Brasil Brokers Participacoes SA (BBRK3) advanced to the highest in three weeks after saying it plans to buy back shares.

The Ibovespa climbed 0.2 percent to 51,716.16 at the close of trading in Sao Paulo with 41 stocks higher and 28 lower. The real gained 0.1 percent to 2.3574 per dollar at 5:26 p.m. local time. Swap rates, a gauge of expectations for interest-rate moves, fell on most contracts amid speculation that the central bank will signal tomorrow in the minutes of its latest policy meeting that it will avoid stepping up increases in borrowing costs.

“Equity investors seem to be comfortable with the way the central bank is dealing with inflation, so that shouldn’t be a source of trouble for now,” Fernando Goes, an analyst at Sao Paulo-based brokerage Clear Corretora, said in a phone interview.

Policy makers led by central bank President Alexandre Tombini last week lifted the benchmark Selic rate to 9 percent from 8.5 percent. The Ibovespa is down 15 percent this year, the worst performance among the world’s major equity gauges.

Natura climbed 3.1 percent to 47.49 reais. Tim gained 3 percent to 9.58 reais. Brasil Brokers advanced 3.3 percent to 5.61 reais.

Usiminas, OGX

The Ibovespa earlier fell as much as 1 percent as some commodities producers followed raw materials lower. Steelmaker Usinas Siderurgicas de Minas Gerais SA fell 0.8 percent to 10.36 reais. The Bloomberg Base Metals 3-Month Price Commodity Index lost 1.4 percent, the most since July 30.

Eike Batista’s OGX Petroleo & Gas Participacoes SA dropped 2.4 percent to 41 centavos. The former billionaire sold a 5.49 percent stake of his flagship oil company from Aug. 29 through yesterday, OGX said in a regulatory filing today. The shares have plunged 91 percent in 2013.

The Ibovespa has gained 15 percent from this year’s low on July 3 as higher commodities prices and a weaker real fueled a rally in raw-material exporters. Brazil’s benchmark gauge climbed 10 percent in dollar terms during the period, compared with an advance of 2.8 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.24 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.73 billion reais this year through Sept. 2, 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: Brendan Walsh at bwalsh8@bloomberg.net

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