Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Ibovespa Posts Best Weekly Gain in 10 Months as Usiminas Surges

The Ibovespa posted its best weekly gain in 10 months as Usinas Siderurgicas de Minas Gerais SA led a rally in Brazilian steelmakers after its quarterly earnings exceeded analysts’ estimates, outweighing a drop in banks.

Cia. Siderurgica Nacional SA, the country’s third-biggest steelmaker by output, rose the most since November. Banco Bradesco SA dropped to a one-week low as financial institutions tumbled on mounting speculation that credit growth in Brazil is slowing.

The Ibovespa gained 0.7 percent to 49,422.05 at the close of trading in Sao Paulo, extending this week’s gain to 4.3 percent, the most since Sept. 14. Thirty-eight stocks advanced on the measure today while 28 declined. The real weakened 0.6 percent to 2.2571 per dollar at 5:31 p.m. local time.

Usiminas soared 15 percent to 9 reais after posting adjusted earnings before interest, taxes, depreciation and amortization of 441 million reais, more than the 388.8 million average estimate of six analysts surveyed by Bloomberg.

“Usiminas reported earnings that were way better than expected, which could be a sign that the industry may be benefiting from a weaker currency, which makes steel exports more competitive,” Luis Gustavo Pereira, an analyst at Futura Corretora brokerage, said by phone from Sao Paulo.

CSN climbed 8.6 percent to 6.95 reais, the biggest one-day jump since Nov. 29.

Banks Decline

Bradesco dropped 1.9 percent to 28.29 reais as the MSCI Brazil/Financials index sank a third day to a one-week low. State-run lender Banco do Brasil SA lost 0.4 percent to 22.49 reais.

Itau Unibanco Holding SA is expected to cut forecasts for credit growth this year as a cooling economy curbs demand for loans from Latin America’s two biggest banks, according to analyst reports. The lender, which in April said new loans would increase as much as 14 percent this year, will probably say credit expanded as little as 8.5 percent when it reports second-quarter results on July 30, analysts at Banco Safra SA said in a note last week.

Bradesco this week lowered its estimate to between 11 percent and 15 percent from a range of 13 percent to 17 percent.

Brazil’s benchmark equity gauge slumped 19 percent this year through yesterday, wiping out $227 billion from the value of Brazilian equities, according to data compiled by Bloomberg. The Ibovespa trades at 12.5 times analysts’ earnings estimates for the next four quarters, compared with 10.4 for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume for stocks in Sao Paulo was 5.08 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.7 billion reais this year through July 24, according to data compiled by the exchange.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.