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Ibovespa Rises as GDP Forecast Buoys B2W; Petrobras Jumps

Oct. 21 (Bloomberg) -- The Ibovespa rose to the highest since May as bets that growth is accelerating in Latin America’s biggest economy helped spark gains in online retailer B2W Cia. Digital and homebuilder MRV Engenharia e Participacoes SA.

Petroleo Brasileiro SA, the state-run oil company, surged the most in two months as a group it led won a license to develop Brazil’s biggest oil discovery under more favorable terms than analysts had anticipated. Mining company Vale SA followed metals higher. Lupatech SA, the supplier of valves and anchor ropes to Petrobras that defaulted on dollar bonds earlier this year, rallied the most on record as it considers converting debt into equity. Banco Bradesco SA dropped after the bank reduced estimates for net interest income.

The Ibovespa climbed 1.3 percent to 56,077.43 in Sao Paulo, with 43 stocks higher and 28 lower. The real weakened 0.4 percent to 2.1780 per U.S. dollar at 5:28 p.m. local time.

“The Brazilian economy will probably have a better fourth quarter, and 2014 could be slightly better than 2013, which should help equities to rebound,” Alvaro Bandeira, a partner at Orama Asset Management, said in a telephone interview from Rio de Janeiro.

Analysts covering Brazil raised their 2013 economic growth forecast to 2.50 percent from 2.48 percent and projections for 2014 industrial production expansion to 2.50 percent from 2.39 percent, according to the median of about 100 estimates in a central bank survey published today.

MRV added 2.4 percent to 9.90 reais. B2W climbed 4.4 percent to 17.05 reais. Vale rose 2.1 percent to 32.37 reais.

Petrobras Surges

Petrobras jumped 5.3 percent to 18.88 reais.

Lupatech surged 86 percent to 1.10 reais. The company described possible changes in its capital structure in a regulatory filing today.

Bradesco declined 1.4 percent to 32.60 reais. The Osasco, Brazil-based lender said net interest income, which is the revenue from interest earned on assets compared with payments to depositors, will expand 1 percent to 3 percent in 2013, down from 4 percent to 8 percent in a previous forecast. The lower range reflects slower credit growth, Executive Director Luiz Carlos Angelotti told reporters on a conference call today.

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 13 percent in dollar terms this year, compared with a decline of 1.3 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.06 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.61 billion reais this year through Oct. 17, according to data compiled by the exchange.

To contact the reporters on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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