The Bovespa index rose the most among major stock benchmarks as Gafisa SA and BR Properties SA led homebuilders higher after economists reduced their estimates for Brazil’s inflation this year.
Itau Unibanco Holding SA, Latin America’s biggest bank by market value, advanced as it completed its tender offer for Redecard SA’s shares. Competing card-payment processor Cielo SA led declines on the benchmark as Grupo BTG Pactual cut the stock to the equivalent of hold. Airline Gol Linhas Aereas Inteligentes SA climbed to the highest since March. Oil producer Petroleo Brasileiro SA advanced as it sold $3.3 billion of bonds denominated in euros and pounds.
The Bovespa rose 1 percent to 61,909.99 at the close of trading in Sao Paulo. Fifty-one stocks advanced on the measure while 18 retreated. The real slid 0.1 percent to 2.0256 per U.S. dollar at 5:58 p.m. local time.
“Even though there is still so much doubt about when the European debt crisis is going to end, investors seem optimistic about Brazil recovering with lower inflation,” Pedro Galdi, the chief strategist at brokerage SLW Corretora, said by the phone from Sao Paulo. “The trend for the Bovespa is up.”
Economists covering Brazil cut their forecast for 2012 inflation to 5.59 percent from 5.62 percent, according to the median estimate in a central bank weekly survey of about 100 analysts published today.
Gafisa gained 3.5 percent to 4.70 reais. BR Properties rose 3.9 percent to 25.50 reais, a record high. The BM&F Bovespa Real Estate index rose 1.8 percent to the highest closing level since March.
Redecard Tender Offer
Itau advanced 0.3 percent to 33.76 reais. The bank said it purchased 299 million shares of Redecard for 10.5 billion reais ($5.2 billion) as it completed its plan to take the company private.
Cielo declined 3.4 percent to 57.45 reais as BTG Pactual analysts said the company’s profit could be hurt by the government’s campaign to reduce consumer interest rates as it cut its recommendation from buy.
Gol gained 5.8 percent to 12.17 reais, the highest since March 30. Petrobras, as Petroleo Brasileiro is known, advanced 1.1 percent to 22.96 reais.
The Bovespa has climbed 18 percent from this year’s low on June 5 as eased concern about Europe’s crisis and borrowing costs at a record low in Brazil boosted demand for equities. The index trades at 13.9 times analysts’ earnings estimates for the next four quarters, which compares with the ratio of 11.3 times for MSCI Inc.’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume was 6.9 billion reais in stocks in Sao Paulo today, which compares with a daily average of 7.26 billion reais this year through Sept. 21, according to data compiled by the exchange.