Ibovespa Rises for Second Day as Banco do Brasil Rallies

The Ibovespa advanced for a second straight day as Banco do Brasil SA and Petroleo Brasileiro SA rose on speculation the next Ibope election poll will show reduced support for President Dilma Rousseff’s government.

Petrobras, as state-controlled Petroleo Brasileiro is known, contributed the most to the gauge’s advance on wagers it would fare better under a new government. Commodity producers including Gerdau SA (GGBR4) rallied after economic data indicating growth in the U.S. pushed oil and metal prices higher.

The Ibovespa climbed 1.8 percent to 52,111.85 at the close of trading in Sao Paulo, with 63 stocks rising and 10 falling. The gauge, which was up 0.5 percent this week, has rallied 16 percent since this year’s low on March 14 as state-owned companies gained after polls showed Rousseff was losing support before the October election, spurring speculation that a new administration will be more successful in boosting growth.

“The big trigger is the voting polls,” Fernando Goes, an analyst at brokerage firm Clear Corretora, said by phone from Sao Paulo. “This government has been bad for the market, has intervened a lot. Disapproval of the government is good for the business community”

Ibope may report a presidential election poll done between April 10 and April 17, according to statement published on the website of Brazil’s Superior Electoral Court. Rousseff’s disapproval rating rose in a Vox Populi poll published today.

Banco do Brasil climbed 4.3 percent to 24.11 reais, the best performer on the gauge. Petrobras gained 3.8 percent to 16.38 reais. Utility Centrais Eletricas Brasileiras SA (ELET6) rose 3.3 percent to 11.98 reais.

Commodity Rally

Gerdau, which got 39 percent of its 2013 sales from North America, jumped 4.1 percent to 13.83 reais. Usinas Siderurgicas de Minas Gerais SA (USIM5), the steelmaker known as Usiminas, climbed 3.4 percent to 9.34 reais.

“Regardless of what’s going on in Brazil, the external outlook seems more positive, with signs that the U.S. economy is recovering, and that has helped the Ibovespa,” Joao Pedro Brugger, who helps oversee 400 million reais as a portfolio manager at Leme Investimentos, said in a telephone interview from Florianopolis, Brazil.

The Standard & Poor’s GSCI index of 24 raw materials climbed 0.3 percent after a U.S. report showed claims for jobless benefits rose less than economists forecast last week. The Federal Reserve Bank of Philadelphia’s factory index increased to 16.6 in April, the highest level since September, from 9 in the prior month, another report showed.

The real advanced 0.4 percent to 2.2336 per dollar at 5:25 p.m. local time.

Medical-services provider Fleury SA (FLRY3) slipped 1.7 percent to 17.04 reais after Valor Economico reported that private-equity firm Gavea Investimentos may review its bid to buy a controlling stake after finishing an audit.

Trading volume for the stock index’s members was 18 percent below the average of the previous 30 days before tomorrow’s holiday, data compiled by Bloomberg show.

To contact the reporters on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

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

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