The Bovespa index rose for the first time in four days as OGX Petroleo & Gas Participacoes SA climbed after declaring gas fields it operates are commercially viable.
The oil producer controlled by Eike Batista contributed the most to the benchmark’s advance. JBS SA, the world’s largest beef producer, advanced to an eight-month high. Paper maker Klabin SA rose to a record. Steelmaker Usinas Siderurgicas de Minas Gerais SA fell for a fourth day to a two-month low.
The Bovespa advanced 0.4 percent to 61,966.26 at the close of trading in Sao Paulo. Thirty-eight stocks rose on the measure and 28 fell. The real appreciated 0.3 percent to 2.0360 per dollar.
OGX snapped a four-day losing streak, rising 4.2 percent to 4.97 reais after saying in a regulatory filing that fields it operates in partnership with MPX Energia SA may hold 0.2 trillion to 0.5 trillion cubic feet of natural gas.
“OGX had a nasty tumble, and today’s announcement of these reserves helps the stock,” Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview.
Delays last year triggered a stock selloff that wiped out 10.8 billion reais in the oil startup’s market value in one month. The stock has climbed 13 percent this year.
The IPCA-15 consumer price index rose 0.88 percent in the month through mid-January, compared with an increase of 0.69 percent in the prior period, the national statistics agency reported today. The median forecast of 38 economists surveyed by Bloomberg was for a 0.82 percent advance.
“I thought the above-forecast inflation would weigh more on stocks, but it’s having a limited impact,” Joao Pedro Brugger, who helps oversee 235 million reais at Leme Investimentos in Florianopolis, Brazil, said in a telephone interview. “Maybe the market has already priced in higher inflation and the possibility of the central bank having to do a rate hike in the first half of the year.”
Policy makers held the benchmark interest rate at 7.25 percent for a second straight meeting on Jan. 16, saying the domestic recovery was “less intense” than expected and the balance of risks for inflation worsened in the short term.
Klabin rose 4.5 percent to 13.80 reais. JBS advanced 6.4 percent to 7.36 reais, the highest since May 7. MPX gained 0.8 percent to 11.40 reais.
Usiminas, as Usinas Siderurgicas is also known, declined 2.7 percent to 11 reais, its lowest close since Nov. 16.
The Bovespa entered a bull market on Jan. 3 after rising 21 percent from last year’s low on June 5 as stimulus from central banks around the world eased concern economic growth might miss expectations while borrowing costs at a record low in Brazil boosted equity demand. The index has since pared its advance to 18 percent.
Brazil’s benchmark equity gauge trades at 11.6 times analysts’ earnings estimates for the next four quarters, compared with 11 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume of stocks in Sao Paulo was 5.95 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.25 billion reais in 2012, according to data compiled by the exchange.