Light Gains as Volume Surges on Power Rate Rise: Sao Paulo Mover

Light SA (LIGT3) advanced to an eight-month high amid a surge in trading volume as Brazil’s utility regulator allowed the company to increase electricity rates after previously signaling it might order a reduction.

The shares rose 1.6 percent to 20.53 reais at 1:23 p.m. in Sao Paulo. A close at that level would be the highest since March 12. Trading volume was 4.7 times the full-day average of the past three months. The gain was the second biggest among stocks on the Ibovespa benchmark, which declined 0.9 percent.

Aneel, which oversees Brazilian electric utilities, said in a statement today that it allowed Light to increase rates by 3.7 percent effective Nov. 7. The regulator had said at a Sept. 5 preliminary meeting that it could order Light to cut rates by as much as 3.3 percent for households and 6.7 percent for businesses.

The press office for Light, which distributes electricity in Rio de Janeiro state, didn’t immediately respond to an e-mail and phone call seeking comment.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.