The Ibovespa advanced the most in a week as Banco Bradesco SA climbed after its quarterly profit exceeded analysts’ estimates.
Iron-ore producer Vale SA rose for the first time in three days after winning an appeal in a court case about Brazil’s taxation of profits from the company’s foreign units. Rossi Residencial SA rose the most among homebuilders. Airline Gol Linhas Aereas Inteligentes SA was the best performer on the benchmark equity index. Cosmetics company Natura SA fell the most since 2011 as its quarterly earnings trailed forecasts.
The Ibovespa rose 0.5 percent to 51,817.45 at the close of trading in Sao Paulo, with 40 stocks higher and 31 lower. The real gained 0.3 percent to 2.2151 per U.S. dollar at 5:25 p.m. local time. The MSCI Brazil/Financials Index advanced to the highest since October in the best performance among 10 industry groups.
“Brazilian banks manage to perform well even in times when the economy is not doing so great, and Bradesco’s numbers show that strength,” Antonio Goes, a senior analyst at the brokerage firm TOV Corretora, said by phone from Rio de Janeiro. “Consumer stocks, on the other hand, will probably still suffer this year.”
Bradesco climbed 1.8 percent to 33.60 reais. The lender reported first-quarter adjusted net income of 3.47 billion reais, exceeding the average estimate of analysts.
Brazilian banks have maintained profit growth amid sluggish economic growth and fast inflation as they increased lending, sold more secondary products such as insurance and cut jobs, according to Goes.
Itau Unibanco Holding SA added 2.2 percent to 36.50 reais. Its controlling shareholder, Itausa-Investimentos Itau SA, gained 2.2 percent to 9.87 reais. The MSCI gauge of financial stocks rose 2.8 percent.
Vale climbed 1.6 percent to 28.15 reais after earlier surging to as much as 28.50 reais. The company’s appeal against the taxing of some profits from overseas units was granted by Brazil’s Superior Justice Tribunal, or STJ, today. The Brazilian government could still appeal the decision.
Natura fell 5.3 percent to 38.04 reais in the worst performance on the MSCI Brazil/Consumer Staples Index. The company’s first-quarter adjusted net income declined 6 percent to 117.2 million reais from a year earlier.
Trading volume of stocks in Sao Paulo today was 5.86 billion reais, according to data compiled by Bloomberg. That compared with a daily average of 6.74 billion reais this year, according to data from the exchange.