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Ibovespa Rises to One-Week High as JBS Leads Exporter Gains

Jan. 15 (Bloomberg) -- The Ibovespa climbed to a one-week high as beef producer JBS SA led gains among exporters on speculation that faster growth in the global economy will support sales outside Brazil.

Pulp producer Fibria Celulose SA rose the most in four weeks. Travel agency CVC Brasil Operadora e Agencia de Viagens SA snapped a two-day drop after it was rated the equivalent of buy in new coverage at JPMorgan Chase & Co., Morgan Stanley and Itau BBA Securities. Duratex SA, a maker of wood panels and metal fixtures including faucets, advanced the most since September in the gauge’s best performance.

The Ibovespa climbed 0.8 percent to 50,105.37 at the close of trading in Sao Paulo, with 48 stocks higher and 22 lower. The real fell 0.3 percent to 2.3571 per dollar at 5:23 p.m. local time. The global economy will expand 3.2 percent this year, up from a June projection of 3 percent, the World Bank said in a report published yesterday.

“The U.S. and Europe seem to be succeeding in strengthening their economies, which is positive for everyone,” Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil in Sao Paulo, said in a phone interview. “That can benefit Brazil by giving a boost to exporters and also helps to reduce risk aversion in the global markets, supporting equities.”

Brazil’s gross domestic product will expand 2.4 percent this year and 2.7 percent in 2015, the World Bank said. That’s more than predicted by economists surveyed by the country’s central bank last week, who say Latin America’s largest economy will grow 1.99 percent in 2014 and 2.48 percent next year.

JBS climbed 2.3 percent to 8.90 reais. Fibria, which gets about 90 percent of its revenue outside Brazil, advanced 2.2 percent to 26.70 reais. Duratex increased 3.6 percent to 12.54 reais.

CVC Rally

CVC climbed for the first time in three days, advancing 0.6 percent to 15.70 reais.

The “Brazilian travel industry is underdeveloped and should grow double digits,” JPMorgan analysts including Andrea Teixeira wrote in a research note to clients. “CVC’s strong brand and largest exclusive store network should allow for market share gains.”

The Ibovespa has tumbled 11 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year and concern mounted that increased government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo was 5.56 billion reais today, data compiled by Bloomberg show. That compares with a daily average of 7.42 billion reais in 2013, according to data available from 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: Brendan Walsh at bwalsh8@bloomberg.net

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