The Ibovespa, the worst-performing major equity benchmark this year, rose for the first time in four days amid speculation that an improved outlook for the world economy will spur a rebound in Brazilian stocks.
Vale SA, the world’s largest iron-ore producer, followed metals higher. Oil company Petroleo Brasileiro SA climbed the most in three months after saying crude and liquefied natural gas output in Brazil increased 4.6 percent in June. Steelmaker Gerdau SA advanced after posting second-quarter earnings that exceeded analysts’ estimates.
The Ibovespa climbed 1.9 percent to 49,140.78 at the close of trading in Sao Paulo after slumping 2.4 percent in the previous three sessions. Fifty-seven stocks rose today while 11 fell. The gauge has tumbled 19 percent this year, the steepest drop among the world’s major equity benchmarks tracked by Bloomberg.
“After underperforming in the first half of the year, from now on the Ibovespa will probably track global markets, where the outlook seems more positive,” Alexandre Ghirghi, a portfolio manager at Metodo Investimentos, said by phone from Sao Paulo. “Economic data coming from the U.S. have been good, and I don’t see China slowing down at a pace that’d cause major problems.”
Claims for jobless benefits in the U.S. unexpectedly dropped to the lowest level in more than five years in the week ended July 27, the Labor Department reported today. In China, the purchasing managers’ index rose to 50.3 in July, above the level of 50 separating growth and contraction and exceeding the median estimate of 49.8 among economists surveyed by Bloomberg.
Vale added 1.4 percent to 28.55 reais.
Petrobras, as Petroleo Brasileiro is also known, rose 4 percent to 16.94 reais, the steepest jump since April 29, after releasing its output report.
“So far Petrobras is adhering to its new capacity schedule for 2013 in a pleasing way,” analysts including Auro Rozenbaum, at Banco Bradesco SA’s brokerage unit, wrote in a note to clients.
Gerdau jumped 4.3 percent to 15.22 reais.
The real depreciated 1.1 percent to 2.3016 per U.S. dollar at 5:24 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials added 1.3 percent.
Brazil will cut import tariffs on basic materials, Finance Minister Guido Mantega said today. The measures, which include tariffs on steel, textiles and paper, are aimed at improving competitiveness of the country’s industry and easing inflation, and will take effect in September, according to Mantega.
Petrochemicals maker Braskem SA sank 2 percent to 17.22 reais.
Consumer prices in Latin America’s largest economy increased 6.7 percent in June from a year earlier, exceeding the 6.5 percent of the upper limit of the central bank’s target, according to the national bureau of statistics.
The Ibovespa’s rout this year wiped out $243 billion from the value of Brazilian stocks, according to data compiled by Bloomberg. Brazil’s benchmark equity gauge trades at 12.2 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 6.77 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.63 billion reais this year through July 30, according to data compiled by the exchange.