The Ibovespa rose for a third consecutive session as oil company Petroleo Brasileiro SA led commodities producers higher, offsetting losses by real-estate developer BR Properties SA.
The MSCI Brazil/Energy Index was the best performer among 10 industry groups. Sugar cane processor Sao Martinho SA jumped to a record high after agreeing to increase its stake in Santa Cruz SA Acucar e Alcool to 92 percent.
The benchmark stock index advanced 0.6 percent to 53,756.86 at 1:08 p.m. in Sao Paulo, extending its three-day rally to 4.2 percent. Fifty-one stocks gained today while 18 dropped. The real advanced 0.7 percent to 2.2283 per dollar.
“The Ibovespa has been rising, boosted by state-controlled companies, on hopes that a change in the government may improve their management,” Eduardo Velho, the chief economist at INVX Global Partners, said in a phone interview from Sao Paulo.
The stock index has surged 19 percent since reaching a bear market March 14 as speculation President Dilma Rousseff may lose a bid for re-election in October buoyed Petrobras, as Petroleo Brasileiro is known, and Centrais Eletricas Brasileiras SA.
Petrobras added 3.8 percent to 18.23 reais today. BR Properties slumped 3.7 percent to 17.29 reais after reporting sales that missed analysts’ estimates. Sao Martinho rallied 5.5 percent to 34.31 reais.