The Ibovespa rose for the first time in six sessions as pulp maker Fibria Celulose SA led gains among commodity producers amid speculation the recent losses in Brazilian stocks may have been excessive.
Petroleo Brasileiro SA advanced the most in two weeks after the state-controlled oil producer said its output increased in August. Gafisa SA rose the most among homebuilders after Brazil increased the amount of money available from a government-run pension fund to purchase houses.
The Ibovespa climbed 1.6 percent to 53,179.46 at the close of trading in Sao Paulo with 53 stocks rising and 20 falling. The benchmark index capped its longest losing streak in six months yesterday on concern a political deadlock over the U.S. budget will hurt the global economy. The real fell 0.4 percent today to 2.2254 per dollar at 5:19 p.m. local time.
“We’ll probably keep seeing the global economy showing signs of a stronger recovery, which means the outlook is still positive for equities,” Rogerio Freitas, a partner at hedge fund Teorica Investimentos, said by phone from Rio de Janeiro. “The shutdown in the U.S. is a risk to the recovery, but for me it’s more of a short-term issue. It shouldn’t change the big picture, which is still for faster growth around the world.”
Lawmakers in Washington failed to agree on a federal budget by a midnight deadline, starting a shutdown that will put as many as 800,000 federal employees out of work temporarily and halt some government services. Congress now faces a dispute over raising the $16.7 trillion debt ceiling this month.
Fibria rallied 4 percent to 26.49 reais in the best performance on the MSCI Brazil/Materials Index. Steelmaker Usinas Siderurgicas de Minas Gerais SA rose 3.7 percent to 10.91 reais for the biggest advance since Aug. 19.
Petrobras, as Petroleo Brasileiro is known, added 1.7 percent to 18.67 reais. Oil and gas output increased to 1.91 million barrels per day from 1.89 million barrels per day one month earlier, according to data published on the company’s website.
Gafisa rose 3.6 percent to 3.71 reais, the best performance among 20 members of the BM&FBovespa Real Estate Index, which gained 1.2 percent.
Workers can now withdraw money early from the state-run pension fund known as FGTS to buy houses worth as much as 750,000 reais in Sao Paulo, Minas Gerais and Rio de Janeiro states and 650,000 reais elsewhere, Julio Carneiro, the central bank’s deputy head of financial system regulation, told reporters in Brasilia yesterday. The previous limit was 500,000 reais.
“The measure should boost homebuilders’ sales in the coming quarters, so their stocks are rising a lot today,” Felipe Rocha, an analyst at the brokerage firm Omar Camargo, said by phone from Curitiba, Brazil.
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 20 percent in dollar terms this year, compared with a decline of 5.7 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.
Trading volume of stocks in Sao Paulo was 5.23 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.67 billion reais this year through the same day, according to data from the exchange.