Ibovespa Futures Fluctuate Amid China Optimism, OGX Output Drop

Ibovespa (IBOV) futures fluctuated, after the Brazilian stock index posted back-to-back gains, as data showing car sales increased in China boosted metal prices while OGX Petroleo e Gas Participacoes SA reported a drop in output.

OGX, the oil company founded by Eike Batista said crude and gas production fell to a daily average of 13,200 barrels in September from 13,300 a month earlier. Lupatech SA (LUPA3), a provider of oil equipment and services, may be active after saying it missed a bond payment.

Ibovespa futures contracts expiring next week were little changed at 52,795 at 9:33 a.m. in Sao Paulo after swinging from a gain of 0.4 percent to a loss of 0.1 percent. The real strengthened 0.1 percent to 2.1787 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index added 0.2 percent.

“Data in China keep pointing to strong economic activity, which is positive for Brazil,” Alvaro Bandeira, a partner at Orama Asset Management, said in a telephone interview from Rio de Janeiro. “You still have some issues weighing on the Ibovespa. OGX, for example, is still in trouble, and can push the index a lot lower given its weighting.”

China is Brazil’s biggest trading partner. OGX is the sixth-heaviest weighted stock on the Ibovespa.

Wholesale deliveries of cars, multipurpose and sport-utility vehicles climbed 21 percent to an eight-month high 1.59 million units last month, according to the state-backed China Association of Automobile Manufacturers.

The Ibovespa entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 18 percent in dollar terms this year, compared with a decline of 3 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo yesterday was 6.25 billion reais, compared with a daily average of 7.59 billion reais this year through Oct. 9, 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: David Papadopoulos at papadopoulos@bloomberg.net

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