Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

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.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ibovespa Advances as Brazil Growth Outlook Boosts Homebuilders

Don't Miss Out —
Follow us on:

Sept. 13 (Bloomberg) -- The Ibovespa rose for the first time in four days as Gafisa SA led homebuilders higher after central bank data showed Brazil’s economy grew more than forecast.

Airline Gol Linhas Aereas Inteligentes SA was the best performer on the gauge after saying a measure of profitability known as yield, or the average fare paid by a passenger to fly a kilometer, increased 33 percent in August from a year earlier. Abril Educacao SA, the education unit of Grupo Abril, fell the most in two years after the government cut book orders.

The Ibovespa advanced 0.9 percent to 53,797.51 at the close of trading in Sao Paulo, with 57 stocks gaining and 13 losing. The measure rose 0.1 percent this week. The real weakened 0.3 percent to 2.2825 per dollar today at 5:21 p.m. local time.

“The latest economic data seem a bit more positive,” Luis Gustavo Pereira, the head strategist at Futura Corretora brokerage, said in a phone interview from Sao Paulo. “The pessimism about growth that has pushed equities lower this year eased a bit.”

Brazil’s economic activity index, a proxy for gross domestic product, increased 3.4 percent in July from a year earlier, the central bank said today. The median estimate among economists surveyed by Bloomberg was for 2.9 percent growth.

Gol jumped 9.8 percent to a four-month high of 11.36 reais. Gafisa advanced 3.3 percent to 3.45 reais, leading the BM&FBovespa Real Estate index higher.

Abril Slumps

Abril slumped 8.2 percent to 31.50 reais, the most since August 2011. Brazil’s federal government will buy 30 million textbooks from Abril for public-school students in 2014, the company said in a regulatory filing yesterday after the market closed. That compares with 44.8 million books this year, according to a statement on Abril’s website.

The Ibovespa entered a bull market on Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 21 percent in dollar terms this year, compared with a decline of 6.5 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.15 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.73 billion reais this year through Sept. 6, 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

Please upgrade your Browser

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

Chrome, Firefox, Safari, Opera or Internet Explorer.