Ibovespa Futures Rise on Gain in Commodities

Ibovespa futures climbed, with the equity gauge poised for a third consecutive weekly rally, as strengthening commodities bolstered the outlook for Brazil’s exporters of raw materials.

Brookfield Incorporacoes SA (BISA3) may be active after Fitch Ratings reduced the homebuilder’s grade to B from B+. Travel agency CVC Brasil Operadora e Agencia de Viagens SA may move after saying first-quarter bookings increased 20 percent from a year earlier.

Ibovespa futures contracts due this month advanced 0.7 percent to 51,950 at 9:14 a.m. in Sao Paulo. The stock index is up 3.3 percent this week. The real strengthened 0.5 percent to 2.2675 per U.S. dollar today. The Standard & Poor’s GSCI index of 24 raw materials rose 0.4 percent. Commodity producers account for about one-third of the Ibovespa’s weighting.

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 gained 14 percent as state-owned companies including Centrais Eletricas Brasileiras SA (ELET6) rebounded.

Trading volume of stocks in Sao Paulo yesterday was 7.03 billion reais, compared with a daily average of 6.52 billion reais this year, according to data from the exchange.

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

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

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