Ibovespa Extends First Weekly Increase This Year as Oi Advances

The Ibovespa extended its first weekly gain this year as real-estate companies climbed after a report showed slower-than-forecast inflation in Brazil.

Oi SA (OIBR4) rallied after Folha de S.Paulo reported that a group of 12 banks agreed to raise as much as 8 billion reais ($3.3 billion) to buy a stake in the company that will result from the merger of the phone carrier and parent Portugal Telecom SGPS SA. Homebuilder Gafisa SA (GFSA3) jumped after saying it is considering taking its unit Tenda public, leading advances on the BM&FBovespa Real Estate index .

The Ibovespa rose 0.4 percent to 47,936.30 at 10:45 a.m. in Sao Paulo, with five stocks higher for every two that fell. The gauge is up 0.6 percent this week. The real depreciated 0.3 percent to 2.3893 per U.S. dollar today. The IPCA index of consumer prices increased 5.59 percent in the 12 months through January, compared with the 5.65 percent median forecast of economists surveyed by Bloomberg.

“The IPCA numbers were good and bring some relief,” Pedro Galdi, the head strategist at SLW Corretora in Sao Paulo, said in a phone interview. “It’s positive for companies that depend more on domestic consumption.”

Oi gained 5.1 percent to 4.12 reais. Gafisa climbed 7.3 percent to 3.23 reais. The BM&FBovespa Real Estate Index advanced 0.8 percent, with 14 of its 20 members rising.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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