The Ibovespa rose the most in two weeks after better-than-estimated U.S. jobs data bolstered the outlook for global growth, sparking a rally in commodity producers including Cia. Siderurgica Nacional SA.
Vale SA, the world’s largest iron-ore producer, rose to the highest since May as metals prices climbed. The MSCI Brazil/Materials index was the best performer among 10 industry groups. Oi SA fell the most on the gauge after the phone company said it wasn’t aware that merger partner Portugal Telecom SGPS SA had purchased debt issued by a holding company that’s selling assets amid speculation it may be unable to pay its bills.
The Ibovespa added 1.6 percent to 53,874.58 at the close of trading in Sao Paulo, with 59 of its 71 stocks rising after U.S. job creation surged beyond analysts’ estimates in June and the unemployment rate fell to an almost six-year low, underscoring the strength of a labor market.
“The U.S. jobs report bolstered speculation that the global economy is improving, which is very good for Brazil’s international trading,” Thiago Montenegro, a trader at asset management firm Quantitas Gestao de Recursos.
Vale added 2.1 percent to 27.78 reais. Steelmaker Gerdau SA advanced 3 percent to 13.68 reais, the most since May 2. The materials index jumped 2.6 percent. CSN jumped 4.9 percent to 10.13 reais.
Oi dropped 2.8 percent to 1.76 reais, a record low. The Brazilian telephone company, is asking for more information about Portugal Telecom’s April purchase of 897 million euros ($1.22 billion) in commercial paper from Rioforte, according to a regulatory filing today. Rioforte is owned by Grupo Espirito Santo, or GES, one of Portugal Telecom’s largest shareholders with a 10 percent stake, according to data compiled by Bloomberg.
The Ibovespa fell as much as 0.5 percent earlier today as a Datafolha poll that was published yesterday on newspaper Folha de S.Paulo’s website showed that President Dilma Rousseff’s support among voters in the Oct. 5 election rose to 38 percent from 34 percent in June. Aecio Neves of the Brazilian Social Democracy Party had 20 percent, up from 19 percent. The July 1-2 survey of 2,857 people has a margin of error of two percentage points.
The benchmark gauge entered a bull market in May after polls showed Rousseff losing voter support, fueling speculation that a change in government would reduce interference in state-run companies.
Trading volume of stocks in Sao Paulo was 5.4 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.57 billion reais this year, according to data from the exchange.