Ibovespa Snaps Three-Day Drop as Petrobras Gains on Price Policy
The Ibovespa gained for the first time in four sessions as state-controlled Petroleo Brasileiro SA (PETR4) rallied after its chief executive officer said the company is asking the government to raise domestic fuel prices.
Iron-ore producer Vale SA (VALE5) followed metals higher. Suzano Papel & Celulose SA rose after the pulp producer posted third-quarter earnings that exceeded analysts’ estimates.
The Ibovespa climbed 0.2 percent to 54,246.41 at 10:42 a.m. in Sao Paulo, with 60 of its 73 member stocks rising. Petrobras, as Petroleo Brasileiro is known, jumped 3.5 percent to 19.13 reais after saying it has asked for policy changes that would allow prices in Brazil to more closely follow international levels after third-quarter earnings trailed analyst estimates by 41 percent.
“Investors are thinking that, given how horrible Petrobras’s third-quarter earnings were, an increase in fuel prices is imminent,” Pedro Galdi, head strategist at Sao Paulo-based brokerage SLW Corretora, said in a telephone interview. “After three straight losses, the Ibovespa may now go back to a more positive trend.”
The real was little changed at 2.1868 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index rose 0.3 percent. Suzano added 1.2 percent to 9.02 reais. Vale climbed 0.6 percent to 32.45 reais.
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