Ibovespa Futures Rise as Brazil Output Grows, Commodities Gain

Ibovespa futures rose as a bigger-than-forecast increase in industrial production and higher commodity prices boosted the outlook for Brazilian stocks.

Light SA, which generates and distributes electricity in the state of Rio de Janeiro, may be active after quarterly revenue trailed estimates. Soybean producer Vanguarda Agro SA (VAGR3) may move as it said it will post its first profit in 2014.

Ibovespa futures contracts expiring in April gained 0.8 percent to 46,150 at 9:28 a.m. in Sao Paulo. The real was little changed at 2.3493 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials added 0.1 percent. Commodity producers account for 35 percent of the Ibovespa’s weighting, according to data compiled by Bloomberg.

Brazil’s industrial production increased 2.9 percent in January from a month earlier, according to data from the national statistics bureau. The median estimate among 42 economists surveyed by Bloomberg was for a gain of 2.5 percent.

The Ibovespa has tumbled 19 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target and concern mounted that higher government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo yesterday was 6.39 billion reais, compared with a daily average of 6.35 billion reais this year, according to data from the exchange.

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

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net Richard Richtmyer, Dennis Fitzgerald

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