The Ibovespa rose the most in five weeks as Kroton Educacional SA led a rally in consumer stocks after the for-profit college’s earnings beat estimates.
Prumo Logistica SA, the port developer formerly known as LLX, rallied the most on the gauge. The MSCI Brazil/Consumer Discretionary Index climbed to the highest since March 6. Homebuilder MRV Engenharia e Participacoes SA rebounded from its biggest two-day slump since 2012 after saying it plans to buy back about 5 percent of its publicly traded shares. Usinas Siderurgicas de Minas Gerais SA, the steelmaker known as Usiminas, followed metals higher.
The Ibovespa climbed 2.3 percent to 46,150.96 at the close of trading in Sao Paulo, the biggest one-day gain since Feb. 6. Sixty-seven stocks rose on the gauge and four dropped. The real strengthened 0.4 percent to 2.3390 per U.S. dollar at 5:24 p.m. local time.
“This earnings season has been somewhat positive so far, with companies delivering good results despite all the concern surrounding the Brazilian economy,” Joao Pedro Brugger, who helps oversee 400 million reais at Leme Investimentos said in a phone interview from Florianopolis, Brazil. “Companies that depend on domestic consumption are one example of those who have managed to do well even in a not-so-favorable environment.”
Brazil’s inflation will accelerate to 6.11 percent this year, and the economy will grow 1.7 percent compared with 2.3 percent in 2013, according to the March 14 central bank survey of about 100 analysts published yesterday.
Kroton increased 4.7 percent to 46.90 reais. The company posted adjusted net income of 137.8 million reais in the fourth quarter, which compared with an average estimate of 86.4 million reais among analysts surveyed by Bloomberg.
Anhanguera Educacional Participacoes SA fell 1.6 percent to 12.51 reais after Kroton investor relations officer Carlos Lazar said the merger between the two companies may not go through depending on the restrictions that antitrust regulators may impose.
Drugstore chain Raia Drogasil added 3.5 percent to 16.97 reais, and health-insurance broker Qualicorp SA advanced 1.9 percent to 20.37 reais, after both companies also reported earnings that topped analysts’ estimates.
MRV climbed 3.6 percent to 7.20 reais.
Usiminas rose 4.2 percent to 9.28 reais as the Bloomberg Base Metals 3-Month Price Commodity Index climbed 0.7 percent. Prumo jumped 7.8 percent to 83 centavos.
The Ibovespa entered a bear market on March 14 after falling 20 percent from its October 2013 high through that day, with real-estate companies and retailers falling amid concern that an economic slowdown will spur a cut in Brazil’s credit rating.
Trading volume of stocks in Sao Paulo was 6.28 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.34 billion reais this year, according to data from the exchange.