The Ibovespa advanced for the first time in six sessions, with homebuilder MRV Engenharia & Participacoes SA leading gains, amid speculation that recent losses for Brazilian equities may have been excessive.
Ultrapar Participacoes SA (UGPA3), the holding company that runs gas stations under the Ipiranga brand, advanced after it agreed to buy drugstore chain Extrafarma for 1 billion reais ($450 million). Mining company MMX Mineracao & Metalicos SA led declines in raw-material producers as metal prices dropped.
The Ibovespa climbed 0.3 percent to 52,479.51 at 10:59 a.m. in Sao Paulo. The benchmark stock index capped its longest losing streak in six months yesterday on concern a political deadlock over the U.S. budget will hurt the global recovery. The real climbed 0.4 percent today to 2.2088 per dollar.
“We’ll probably keep seeing the global economy showing signs of a stronger recovery, which means the outlook is still positive for equities,” Rogerio Freitas, a partner at hedge fund Teorica Investimentos, said by phone from Rio de Janeiro. “The shutdown in the U.S. is a risk to the recovery, but for me it’s more of a short-term issue. It shouldn’t change the big picture, which is still for faster growth around the world.”
Lawmakers in Washington failed to agree on a federal budget by a midnight deadline, starting a shutdown that will put as many as 800,000 federal employees out of work temporarily and halt some government services. Congress now faces a dispute over raising the $16.7 trillion debt ceiling this month.
MRV rose 2.9 percent to 9.37 reais. Ultrapar climbed 0.3 percent to 54.97 reais. MMX dropped 1.3 percent to 1.53 reais.
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