The Ibovespa rose for the first time in three sessions as Banco Santander Brasil SA led gains in financial stocks after Citigroup Inc. said it’s “bullish” on the country’s banks.
Banco Industrial e Comercial SA, the Sao Paulo-based lender also known as BicBanco, rallied the most since 2009 after O Estado de S.Paulo reported it’s in talks to sell a stake to larger competitors including Itau Unibanco Holding SA. Lojas Renner SA was the best performer among retailers. Iron-ore producer Vale SA gained the most in two weeks after a report showed manufacturing increased in China, the company’s main export market.
The Ibovespa added 0.9 percent to 54,602.38 at the close of trading in Sao Paulo, with 54 stocks higher and 19 lower. The real climbed 0.5 percent to 2.1987 per dollar at 5:46 p.m. local time after rising 3.2 percent last week, the most among 16 major currencies tracked by Bloomberg.
“The environment favors a better performance for equities, with a positive outlook for growth and inflation apparently under control,” Rogerio Freitas, a partner at hedge fund Teorica Investimentos, said by phone from Rio de Janeiro.
Annual inflation was slower than 6 percent in the 12 months through mid-September for the first time in nine months, the national statistics agency reported Sept. 20.
Santander added 2.9 percent to 14.66 reais. The Ibovespa will reach 60,000 by the end of the year and to 64,000 in 2014, boosted by the U.S. Federal Reserve’s decision to delay tapering of its bond-buying program and by better-than-forecast economic data in Brazil, Citigroup analysts wrote in a report.
The data “suggested less of a slow-down, revealing some unexpected pockets of purchasing power and consumer financial reserves” that boost the outlook for consumer stocks, Citigroup’s Stephen Graham and Fernando Siqueira wrote in an e-mailed note to clients.
Renner climbed 2.4 percent to 68.49 reais.
Vale added 1.2 percent to 32.75 reais. In China, the preliminary reading for a Purchasing Managers’ Index released by HSBC Holdings Plc and Markit Economics was 51.2 in September, which compared with the 50.9 median estimate among 14 economists surveyed by Bloomberg. The gauge was at 50.1 in August.
BicBanco jumped 9.9 percent to 4.90 reais. The lender said in a regulatory filing today that it hadn’t reached an agreement to sell a controlling stake.
The Ibovespa entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 17 percent in dollar terms this year, compared with a decline of 3.7 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.
Trading volume of stocks in Sao Paulo was 5.2 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.75 billion reais this year through Sept. 18, according to data compiled by the exchange.