The Ibovespa rose to the highest level in a week as Centrais Eletricas Brasileiras SA (ELET6) led a rally in state-run companies after a voter poll showed eroding support for President Dilma Rousseff.
Petroleo Brasileiro SA, the oil producer known as Petrobras, climbed to the highest since January. Banco Santander Brasil SA gained the most on record after its parent company offered to buy out minority shareholders. Gafisa SA rose the most among homebuilders as a report showed slower-than-forecast inflation in Brazil.
The Ibovespa increased 0.9 percent to 51,838.61 at the close of trading in Sao Paulo, with 48 stocks higher and 23 lower. The real slipped 0.4 percent to 2.2322 per U.S. dollar at 5:32 p.m. local time.
“The poll showing Dilma declining is pushing equities higher, especially state-run companies,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. “As we get closer to the elections, investors will pay more and more attention to these polls.”
Support for Rousseff dropped to 37 percent from 43.7 percent in February, according to a poll released today by MDA that was commissioned by the National Transport Confederation. Her personal approval rating fell to 47.9 percent from 55 percent.
The Ibovespa has gained 15 percent since this year’s low on March 14 as separate polls showing declining voter support for Rousseff’s re-election spurred speculation that a new president would be more successful at improving the economy.
Voting shares of Eletrobras, as the utility Centrais Eletricas Brasileiras is known, rose 3.6 percent to 7.98 reais today. Petrobras climbed 0.8 percent to 16.69 reais. Banco do Brasil SA, which is also controlled by the federal government, added 1.9 percent to 23.90 reais.
Santander Brasil rallied 16 percent to 14.75 reais as Banco Santander SA (SAN) offered 4.7 billion euros ($6.5 billion) in shares for a 25 percent stake in its Brazil unit. The offer is equivalent to 15.45 reais per Santander Brasil unit at current prices, according to data compiled by Bloomberg.
Gafisa increased 5.1 percent to 3.73 reais. A report today from the Getulio Vargas Foundation showed that producer, construction and consumer prices rose 0.78 percent in the month through April 20. That is slower than the prior 1.67 percent and compares with the median forecast of 0.81 percent from economists surveyed by Bloomberg.
Trading volume of stocks in Sao Paulo today was 6.99 billion reais, according to data compiled by Bloomberg. That compares with a daily average of 6.7 billion reais this year, according to data from the exchange.
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