Ibovespa Futures Rise as Commodities Gain Boosts Export Outlook

Nov. 6 (Bloomberg) --Ibovespa futures climbed, after the stock index fell yesterday to a three-week low, as higher commodities prices bolstered the outlook for Brazil’s exporters of raw materials.

Homebuilder Gafisa SA (GFSA3) may move after reporting third-quarter earnings that topped analysts’ estimates while PDG Realty SA Empreendimentos & Participacoes (PDGR3) posted a loss that was wider than forecast. OSX Brasil SA (OSXB3), the shipbuilder founded by former billionaire Eike Batista, may be active after people familiar with the matter said the company plans to file for bankruptcy protection by early next week.

Ibovespa futures contracts expiring in December advanced 0.4 percent to 54,180 at 9:15 a.m. in Sao Paulo. The real strengthened 0.1 percent to 2.2857 per dollar. The Standard & Poor’s GSCI index of 24 raw materials added 0.6 percent amid optimism growth is picking up in the U.S., Brazil’s biggest trading partner after China.

A report from the Getulio Vargas Foundation today showed inflation in Latin America’s largest economy was slower than forecast in October. An index of wholesale, construction and consumer prices increased 0.63 percent from a month earlier, less than the 0.74 percent median estimate among economists surveyed by Bloomberg.

In an Oct. 31 statement, OSX said it was ready to seek bankruptcy protection if management decided that was the best way to protect its interests.

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 21 percent in dollar terms this year, compared with a decline of 3.6 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.81 billion reais yesterday, compared with a daily average of 7.61 billion reais this year through Oct. 22, according to the latest data available from 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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