Most Brazilian stocks rose, led by planemaker Embraer SA while homebuilders including Rossi Residencial SA rose amid speculation policy makers may take further steps to boost Brazil’s recovery as a central bank survey showed economists cut growth forecasts.
Vale SA jumped to a five-month high as iron ore advanced for a 10th straight day on declining stockpiles in China. Oil company OGX Petroleo e Gas Participacoes SA slumped the most in two weeks.
The Bovespa index fell 0.1 percent to 59,566.52 at the close in Sao Paulo. Thirty-six stocks advanced on the gauge while 26 fell. The real weakened 0.7 percent to 2.0996 per U.S. dollar. Swap rates on most contracts declined after a central bank survey of about 100 economists showed the median estimate for 2013 growth fell for a fifth week, dropping to 3.4 percent from 3.5 percent.
“With mounting signs that the economy is not growing as fast as the government had expected, more stimulus measures are likely to be announced throughout 2013,” Luciano Rostagno, the chief strategist at Banco WestLB do Brasil SA, said by phone from Sao Paulo.
Embraer rose 4.5 percent to 13.35 reais, the biggest gain in two months.
Rossi gained 2.2 percent to 4.58 reais. The BM&FBovespa Real Estate Index rose 0.6 percent.
Vale, the world’s largest iron-ore mining company, jumped 1.4 percent to 40.31 reais. Iron ore for immediate delivery rose 2.2 percent to $132.20 a dry ton, poised for its longest winning streak since June, according to a price index compiled by The Steel Index Ltd.
OGX fell 5.3 percent to 4.31 reais.
“Vale is tracking gains in iron-ore prices amid what seems to be a more favorable external outlook,” Fausto Gouveia, who helps manage 380 million reais at Legan Administracao de Recursos, said by phone from Sao Paulo. “Signs that growth in China will remain strong are positive for iron-ore and as consequence for Vale.”
The Bovespa index has climbed 14 percent from this year’s low in June as stimulus from central banks around the world eased concerns about an economic slowdown, while record-low benchmark lending rates pushed some investors to move into stocks from fixed income.
The index trades at 11.1 times analysts’ earnings estimates for the next four quarters, in line with the ratio for MSCI Inc.’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume was 6.76 billion reais in stocks in Sao Paulo, data compiled by Bloomberg show. That compares with a daily average of 7.26 billion reais this year through Dec. 14, according to data compiled by the exchange.