Ibovespa Posts Best Two-Week Gain in 19 Months as Fibria Climbs

The Ibovespa (IBOV) posted its biggest two-week advance in 19 months as an increase in commodity prices supported the outlook for Brazil’s exporters.

Pulp company Fibria Celulose SA (FIBR3) led gains among raw-materials producers today. Drugstore chain Brasil Pharma SA rose the most in two weeks as a person familiar with the situation said controlling shareholder Grupo BTG Pactual (BBTG11) was considering a capital injection of as much as $133 million.

The Ibovespa added 0.2 percent to 49,768.06 at the close of trading in Sao Paulo, extending its weekly rally to 5 percent and the two-week advance to 11 percent, the most since August 2012. The real climbed 0.1 percent to 2.2576 per dollar at 5:23 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials increased for a sixth straight day, gaining 0.2 percent on speculation China will take further steps to bolster economic growth.

“Investors are more optimistic now regarding prospects for the global economy, which makes commodity prices rise,” Eduardo Velho, the chief economist at INVX Global Partners, said in a phone interview from Sao Paulo. “Besides China, there’s speculation European leaders may act to support growth, and economic indicators from the U.S. also signal a better year.”

Fibria gained 1.7 percent to 25.07 reais. Brasil Pharma rose 2.1 percent to 3.97 reais. Voting shares of oil producer Petroleo Brasileiro SA climbed 1.3 percent to 15.01 reais, contributing most to the gauge’s advance.

Global Economy

Consumer spending in the U.S. rose in February by the most in three months as incomes increased, a sign that economic momentum was returning as Americans recovered from an unusually harsh winter. China has policies to deal with any economic volatility this year and can’t ignore “difficulties and risks” from a slowdown in the economy, Premier Li Keqiang said in a statement on the government’s website.

Brazil’s benchmark equity gauge entered a bear market March 14 after falling 20 percent from its October high through that day. The gauge has since pared the drop to 12 percent. Trading volume of stocks in Sao Paulo was 7.14 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.43 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 Bradley Keoun

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