The Ibovespa climbed the most in a week as consumer stocks gained after Brazilian retail sales increased more than analysts forecast in March, easing concern that the economic recovery is faltering.
Homebuilder Rossi Residencial SA surged after posting first-quarter sales that exceeded analysts’ estimates. Lojas Renner SA rose the most among retailers. Iron-ore producer Vale SA fell to a 2009 low as metals declined.
The Ibovespa added 0.5 percent to 54,936.41 at the close of trading in Sao Paulo. Forty-six stocks gained on the gauge while 23 dropped. The real depreciated 0.1 percent to 2.0229 per dollar.
“Today’s data aren’t evidence that the economy is really strong, but it may signal that things aren’t as bad as some people have thought,” Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview.
Retail sales rose 4.5 percent in March from the year-earlier period, the national statistics agency reported today. The median forecast of 28 analysts surveyed by Bloomberg was for a 3.6 percent increase.
Renner SA gained 2.4 percent to 77.75 reais, the highest in three months. Natura SA, Latin America’s biggest cosmetics maker, rose 2.9 percent to 51.50 reais, a two-month high.
Rossi jumped 10 percent to 3.52 reais. First-quarter sales of 720 million reais exceeded the average estimate of 688.6 million reais among eight analysts surveyed by Bloomberg. The homebuilder’s earnings report showed that it’s focused on selling its existing inventory of inexpensive houses and generating cash, which is “one of the most important steps in the turnaround process” analysts including Luiz Mauricio Garcia at Banco Bradesco SA’s brokerage unit wrote in a note today.
Vale sank 2 percent to 30.44 reais.
The MSCI Brazil/Materials index sank 2.3 percent amid signs that the global economy is weakening. Separate reports today showed that Germany expanded less than forecast in the first quarter and U.S. industrial production declined in April by the most in eight months. A day after JPMorgan Chase & Co. cut its growth forecast for China, Bank of America Merrill Lynch did the same. Commodities producers account for about 42 percent of the Ibovespa’s weighting.
“Emerging markets suffer from questions regarding Chinese growth,” Will Landers, manager of the BlackRock Latin America Fund, said in an interview on Bloomberg Television today. Losses by commodities producers have pushed the Ibovespa lower, while other industries are doing “very well,” he said.
Brazil’s benchmark equity gauge has lost 9.9 percent this year, the worst performer among 19 major emerging markets, according to data compiled by Bloomberg. The Ibovespa trades at 12.2 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 8.24 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.71 billion reais this year through April 30, according to data compiled by the exchange.