Bovespa Snaps Two-Day Decline on Higher Brazilian Retail Sales

March 14 (Bloomberg) -- The Bovespa index gained for the first time in three days after a report showing Brazilian retail sales rose more than forecast eased concern about the recovery in Latin America’s biggest economy.

Lojas Americanas SA, the country’s second-largest retailer by market value, jumped to a three-month high. Oil producer OGX Petroleo & Gas Participacoes SA rebounded from a record low. JBS SA, the world’s biggest beef producer, rallied after its fourth-quarter sales exceeded analysts’ estimates.

The Bovespa rose 0.4 percent to 57,593.08 at 11:31 a.m. in Sao Paulo. Forty-one stocks gained on the measure while 24 fell. The real appreciated 0.2 percent to 1.9677 per dollar.

“In terms of growth, we’ll probably have something around 3 percent this year, which may not seem too exciting, but it’s a lot better than last year,” Alexandre Ghirghi, a portfolio manager at Metodo Investimentos in Sao Paulo, said in a phone interview. “From a long-term perspective, I think many stocks look attractive.”

Brazil’s retail sales rose 5.9 percent in January from a year earlier, the national statistics agency reported today. The median forecast of 29 analysts surveyed by Bloomberg was for a 5.5 percent increase. Gross domestic product expanded 0.9 percent in 2012, the agency said on Mar. 1.

Lojas Americanas advanced 2.6 percent to 19.07 reais.

Most Brazilian swap rates fell after policy makers signaled no imminent interest-rate increase even after annual inflation accelerated to its fastest pace in 14 months.

‘Cautious Management’

The central bank “considers that uncertainties -- both external and internal -- remain in the outlook and require a cautious management of monetary policy,” according to the minutes from the policy meeting last week when the benchmark Selic rate was held at 7.25 percent.

JBS advanced 2.4 percent to 7.24 reais. The company reported sales of 21.9 million reais in the fourth quarter, more than the average estimate of 20.3 million reais among analysts surveyed by Bloomberg.

OGX jumped 4.2 percent to 2.47 reais after plunging 30 percent in the previous four sessions.

The Bovespa has dropped 9.1 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index of shares in Brazil, Russia, India and China has slid 3.8 percent over the same period.

Brazil’s benchmark equity gauge trades at 11.7 times analysts’ earnings estimates for the next four quarters, compared with 10.9 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 7.64 billion reais yesterday, which compares with a daily average of 7.6 billion reais this year through March 12, according to data compiled by the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net