The Ibovespa extended its weekly gain as President Dilma Rousseff’s comments on the budget stoked optimism that Brazil will maintain its investment-grade rating.
State-controlled Petroleo Brasileiro SA climbed as Rousseff reiterated in an interview this week that the oil company at the center of a corruption scandal will release audited results by the end of the month. Marcopolo SA, which manufactures truck and bus bodies, was the biggest loser on the benchmark index after a newspaper reported that it paid a tax agency 1 million reais ($319,000) to avoid a fine of 200 million reais.
The Ibovespa rose 1.5 percent to 53,123.02 at the close of trading in Sao Paulo, the highest level since November. The benchmark index was up 6 percent for the week after Rousseff said her government will do whatever it takes for Brazil to meet its fiscal target this year.
“Dilma’s apparent commitment to the fiscal adjustment helped appease the market, especially foreign investors,” Otavio Vieira, a partner at hedge fund Fides Asset Management, said by telephone from Rio de Janeiro. “Her support is now much clearer.”
Standard & Poor’s maintained Brazil’s sovereign rating last month at one step above junk with a stable outlook, citing Rousseff’s changes in policies to restore credibility.
Petrobras added 5 percent to 10.72 reais. Marcopolo tumbled 5.9 percent to 2.23 reais after O Estado de S.Paulo reported that it made the payment to the tax agency. The company said in an e-mailed statement that it has strict legal standards and was only aware of the information through news reports.
Steelmaker Metalurgica Gerdau SA fell the most among suppliers of materials as commodities slumped. The shares declined 2.2 percent to 10.80 reais.
The Ibovespa entered a bear market Dec. 12 after falling 22 percent from last year’s high in September. Trading volume of equities in Sao Paulo was 8.2 billion reais Thursday, according to data compiled by Bloomberg. That compares with a daily average of 6.67 billion reais this year, according to the exchange.