Jan. 2 (Bloomberg) -- The Bovespa index rose to an eight-month high as a rally in commodities prices bolstered the outlook for Brazil’s biggest companies.
Iron-ore producer Vale SA and oil company OGX Petroleo e Gas Participacoes SA contributed the most to the gauge’s advance. Homebuilder MRV Engenharia e Participacoes SA slumped after saying a subsidiary was included in a list of companies that the government says keeps workers in slave-like conditions.
The Bovespa rose 2.6 percent to 62,550.10, the highest closing level since April 19. The real rose 0.3 percent to 2.0457 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials rallied 0.8 percent and oil climbed to the highest level in three months after U.S. lawmakers passed a bill that averted spending cuts and tax gains that threatened the world’s biggest economy.
“With this deal, the country should grow more this year, and that’s very good for Brazil as well because the U.S. is one of its main trading partners,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil.
Vale, the world’s largest iron-ore miner, added 4.2 percent to 42.60 reais, the highest closing price since April 13. OGX, billionaire Eike Batista’s oil company, jumped 8.7 percent to 4.76 reais.
Petroleo Brasileiro SA, the state-controlled oil company, jumped 0.9 percent to 19.69 reais.
The legislation passed the U.S. House of Representatives by a vote of 257-167 after 11 p.m. yesterday in Washington, capping a tension-filled final push as Republicans balked at the bipartisan Senate bill.
MRV fell 2.8 percent to 11.65 reais. The homebuilder was included in a Labor Ministry list of companies that the government says keep workers in degrading or slave-like conditions. MRV is taking measures to be excluded from the list, the company said in a statement.
The Bovespa climbed 7.4 percent last year in its biggest annual rally since 2009 as stimulus from central banks around the world eased economic concern, while borrowing costs at a record low in Brazil boosted demand for stocks.
Trading volume was 7.3 billion reais in stocks in Sao Paulo today, according to data compiled by Bloomberg. That compares with 5.9 billion reais on Dec. 28, according to data compiled by the exchange. Brazilian markets were closed on Dec. 31.
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