Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ibovespa Climbs as Vale Leads Exporter Rally After Chinese Data

July 1 (Bloomberg) -- Brazil’s Ibovespa rose for a second straight day as a manufacturing expansion in China, the nation’s top trading partner, bolstered the outlook for exporters.

Vale SA, which ships half of its ore and pellets to China, was the best performer on the MSCI Brazil/Materials Index. Airline Gol Linhas Aereas Inteligentes SA rose the most in two weeks after getting a $68 million loan from Credit Agricole SA. Health-insurance company Qualicorp SA fell as Bank of America Corp. cut its recommendation to the equivalent of hold.

The Ibovespa added 0.6 percent to 53,482.88 at 11:24 a.m. in Sao Paulo, with 47 stocks rising and 23 falling. The real strengthened 0.5 percent to 2.2035 per dollar.

“The numbers from China are encouraging,” Alvaro Bandeira, a partner at Orama Asset Management, said in a phone interview from Rio de Janeiro. “The advance in manufacturing helps Brazilian exporters. I expect a better second half for our companies.”

Chinese manufacturing expanded in June at the fastest pace this year, adding to signs that the government’s efforts to arrest a slowdown are helping to stabilize the economy. The Purchasing Managers’ Index increased to 51 from 50.8 in May. Numbers above 50 signal expansion.

Vale rose 1.3 percent to 26.69 reais, while the materials index climbed 1.2 percent. Gol added as much as 2.4 percent to 12.31 reais in its biggest intraday gain since June 18. Qualicorp declined 1.8 percent to 25.63 reais.

Oi Slumps

Oi SA, Brazil’s biggest phone carrier, slumped the most on the Ibovespa after two non-executive board members at parent company Portugal Telecom SGPS SA resigned without providing a reason. Oi, which is in the process of merging with Portugal Telecom, dropped 4.1 percent to 1.87 real, its lowest intraday price since May 22.

The Ibovespa entered a bull market on May 7, surging 20 percent from this year’s low on March 14, as Petroleo Brasileiro SA rallied on speculation a change in government will reduce intervention in state-run companies.

Trading volume of stocks in Sao Paulo was 5.42 billion reais yesterday, compared with a daily average of 6.6 billion reais this year, according to data from the exchange.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net Rita Nazareth

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.