Ibovespa futures advanced after a poll showed Brazilian President Dilma Rousseff’s lead against potential candidates in the October presidential election is too narrow to call a first-round victory.
Iron-ore mining company MMX Mineracao e Metalicos SA may be active after being added in the new Ibovespa portfolio, effective today. Water utility Cia. de Saneamento Basico do Estado de Sao Paulo may move after the level of the reservoir serving Brazil’s biggest city fell to 10 percent.
Ibovespa futures contracts due in June advanced 0.4 percent to 53,880 at 9:31 a.m. in Sao Paulo. The real weakened 0.3 percent to 2.2284 per dollar.
Rousseff would win 35 percent of the vote in a Sensus poll that pitted her against Aecio Neves and Eduardo Campos, who would garner 23.7 percent and 11 percent for a combined 34.7 percent. The April 22-25 survey of 2,000, published in IstoE magazine on May 3, has a margin of error of plus or minus 2.2 percentage points.
The Ibovespa entered a bear market March 14 after falling 20 percent from its October high through that day. The gauge has since gained 18 percent as state-owned companies including Centrais Eletricas Brasileiras SA (ELET6) rebounded.
Trading volume of stocks in Sao Paulo was 10 billion reais on May 2, compared with a daily average of 6.75 billion reais this year, according to data from the exchange.
To contact the reporter on this story: Denyse Godoy in Sao Paulo at firstname.lastname@example.org
To contact the editors responsible for this story: Brendan Walsh at email@example.com Rita Nazareth, Dennis Fitzgerald