The Ibovespa rose the most since March as builder MRV Engenharia e Participacoes SA led real-estate companies higher after traders pared bets for interest-rate increases in Brazil.
Companies owned by billionaire Eike Batista, including oil producer OGX Petroleo e Gas Participacoes SA and mining unit MMX Mineracao e Metalicos SA, were the best performers on the index. Steelmaker Usinas Siderurgicas de Minas Gerais SA jumped the most since September after Credit Suisse Group AG raised its recommendation to the equivalent of buy. Phone company Oi SA rallied after agreeing to sell its network of underwater cables for 1.75 billion reais ($772 million).
The Ibovespa climbed 2.6 percent to 46,738.90 at the close of trading in Sao Paulo. Thirteen stocks rose on the gauge for each one that fell. Swap rates, a gauge of expectations for interest-rate moves, dropped on most contracts after a central bank survey showed economists covering Brazil cut the median forecast for 2013 growth to 2.31 percent from 2.34 percent.
“In the next policy meeting, it’s possible that the central bank will slow the pace of rate increases,” Luis Gustavo Pereira, an analyst at Futura Corretora brokerage, said in a phone interview. “Eike’s companies are rebounding after big losses on Friday, which also helps to boost the Ibovespa.”
Policy makers raised the target lending rate for a third straight meeting on July 10, bringing it up to 8.5 percent from a record-low 7.25 percent at the start of the year.
The real strengthened 2.1 percent to 2.2201 per dollar.
MRV climbed 6.7 percent to 6.50 reais. OGX jumped 19 percent to 51 centavos after tumbling 22 percent on July 12. MMX gained 17 percent to 1.37 reais.
Usiminas, as Usinas Siderurgicas is known, surged 15 percent to 7.55 reais. The stock trades at “an attractive valuation,” Credit Suisse analysts including Ivano Westin wrote in a note to clients. The steelmaker, which has slumped 41 percent this year, has an enterprise value of 5.9 times its 2014 estimated earnings before interest, taxes, depreciation and amortization, 10 percent below the average among its global peers, according to Credit Suisse.
Oi rallied 9.9 percent to 3.67 reais. The company agreed to sell 22,500 kilometers (14,000 miles) of underwater cables to an investment fund run by Grupo BTG Pactual, according to a statement today.
Embraer SA, the world’s fourth-largest plane builder, added 1.2 percent to 21.45 reais. The company said in an e-mailed statement that its order backlog increased to $17.1 billion, the highest since 2009, and that it delivered 22 commercial and 29 executive jets in in the second quarter.
The start of stock trading in Sao Paulo was delayed by 18 minutes today due to technical problems in BM&FBovespa’s trading platform, the exchange said in a statement.
The Ibovespa has slumped 23 percent this year, and trades at 11.8 times analysts’ earnings estimates for the next four quarters, compared with 10.3 for the MSCI Emerging Markets Index of 21 developing nations’ equities.
Trading volume for stocks in Sao Paulo was 5.47 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.83 billion reais this year through July 11, according to data compiled by the exchange.