The Ibovespa rose for a second straight day after Veja magazine reported that a poll will show challenger Marina Silva beating President Dilma Rousseff in the October election.
Phone company Oi SA was the best performer on the gauge. Power utility Cia. Energetica de Minas Gerais, known as Cemig, slid after JPMorgan Chase & Co. cut its recommendation on the stock to the equivalent of sell.
Brazil’s benchmark equity index climbed 0.1 percent to 59,821.45 at the close of trade in Sao Paulo, with 36 of 70 stocks rising. The Ibovespa has gained 33 percent from this year’s low on March 14, making it the best performer during that span among major stock markets, on bets Rousseff will fail in her re-election bid and a new government will intervene less in state-run companies.
“The Brazilian market is trading these days exclusively on political expectations,” Antonio Goes, a senior analyst at brokerage firm TOV Corretora, said by phone from Rio de Janeiro.
Ibope’s poll to be released today will show Silva beating Rousseff in the second round of the election, Veja columnist Lauro Jardim reported without saying how he got the information. Ibope said in an e-mailed statement that the report was “speculation”, and that the survey hasn’t been concluded.
Silva’s entry into the contest as a replacement for her running mate Eduardo Campos, who died in an Aug. 13 plane crash, has upended the election. A Datafolha poll published last week, the first with her name on the ballot, showed her attracting support from undecided voters.
The Ibovespa fell as much as 0.4 percent earlier today on speculation that recent gains were excessive given that Brazil’s economy is decelerating.
“Investors should not forget that there’s not a single economic reason to justify the recent gains,” Goes said.