The Ibovespa climbed to the highest level since November as health-insurer Qualicorp SA reported quarterly results that beat analysts’ estimates.
Cia. Energetica de Sao Paulo, the state-controlled power company known as Cesp, gained the most on the gauge as Standard & Poor’s raised its credit rating to investment grade. Iron-ore producer Vale SA followed commodities higher while steelmaker Cia. Siderurgica Nacional SA rose to a four-week high.
The Ibovespa added 0.9 percent to 54,412.54 at the close of trading in Sao Paulo, its highest level since Nov. 4, with 47 stocks rising and 21 falling. Brazil’s currency climbed 0.5 percent to 2.2032 per U.S. dollar at 5:24 p.m. local time.
“We’ve had some good numbers,” Luis Gustavo Pereira, a strategist at brokerage Guide Investimentos, said by phone from Sao Paulo. “We’re still cautious about equities in general, but the companies that reported good earnings are doing well.”
Qualicorp gained 3.6 percent to 23.42 reais, a six-week high. The Sao Paulo-based company reported earnings before interest, taxes, depreciation and amortization, or Ebitda, that was higher than predicted by analysts tracked by Bloomberg.
Cesp added 4.5 percent to 29.05 reais. CSN, as Cia. Siderurgica is known, gained 0.9 percent to 9.37 reais, the highest level since April 17. Vale climbed 2.4 percent to 28.25 reais.
The Ibovespa entered a bull market on May 7, surging 20 percent from this year’s low on March 14 through that day, as Petroleo Brasileiro SA rallied on speculation a change in government after the October election will reduce intervention in state-run companies.
Brazilian equities have little upside after recent gains as slow economic growth and higher interest rates sap the outlook for corporate earnings, Citigroup Inc. analysts Stephen H. Graham and Fernando Siqueira wrote in a research note to clients. Thirty of 51 companies on the Ibovespa that have reported first-quarter earnings missed estimates, data compiled by Bloomberg show.
“We don’t think investors should be in a rush to buy Brazil,” the analysts wrote.
Trading volume of stocks in Sao Paulo was 6.02 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.75 billion reais this year, according to data from the exchange.