The Ibovespa rose for the first time in three days as homebuilder PDG Realty SA Empreendimentos & Participacoes and retailer Cia. Brasileira de Distribuicao Grupo Pao de Acucar reported increases in quarterly sales.
Railroad company ALL-America Latina Logistica SA was the best performer on the gauge after saying it’s closer to an agreement to merge with sugar cane processor Cosan SA Industria e Comercio’s logistics unit. Exchange operator BM&FBovespa SA gained after posting earnings that exceeded analysts’ estimates.
The Ibovespa advanced 0.8 percent to 48,201.11 at the close of trading in Sao Paulo, with 50 stocks higher and 22 lower. The benchmark gained 0.3 percent this week. The real climbed 0.3 percent to 2.3860 per U.S. dollar at 5:23 p.m. local time.
“Although economic data have pointed to weaker growth in Brazil, companies selling in the domestic market are still posting good results,” Fernando Goes, an analyst at Clear Corretora in Sao Paulo, said in a phone interview. “Since equities have performed badly since last year, some prices may start looking attractive.”
PDG Realty gained 3.1 percent to 1.68 reais, reducing the slump in the past 12 months to 45 percent. While the company posted a net loss, fourth-quarter sales were 1.78 billion reais, beating the average estimate of 1.3 billion reais among analysts surveyed by Bloomberg.
A report from the central bank today showed Brazil’s economic activity index, a proxy for gross domestic product growth, fell 1.35 percent in December from a month earlier. That compares with a median estimate for a 1.2 percent drop among analysts surveyed by Bloomberg.
ALL rallied 19 percent to 6.45 reais. Cosan advanced 5 percent to 36.47 reais. Cosan abandoned in August plans to buy a 5.67 percent stake in ALL, saying negotiations “ended without the transaction coming to fruition.”
Pao de Acucar increased 2.3 percent to 97.70 reais. BM&FBovespa added 3.7 percent to 9.58 reais. Ten of the 17 companies on the Ibovespa that have already reported fourth-quarter earnings topped forecasts.
Usinas Siderurgicas de Minas Gerais SA, the steelmaker known as Usiminas, tumbled after saying its fourth-quarter sales missed analysts’ estimates. Shares sank 4.1 percent to 11.54 reais.
The Ibovespa has tumbled 15 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target and concern mounted that higher government spending will lead to a reduction in the country’s credit rating.
Trading volume of stocks in Sao Paulo today was 5.79 billion reais, data compiled by Bloomberg show. That compares with a daily average of 6.52 billion reais this year, according to data from the exchange.