The Ibovespa gained for a third consecutive session as state-run oil producer Petroleo Brasileiro SA followed crude higher, overshadowing a drop in consumer stocks.
Petrobras contributed the most to the index’s advance as oil rose amid speculation that the return of supplies from Iran will be gradual as sanctions are eased. The Brazilian producer has said investments in offshore oil and gas production are economically viable with crude above $45.
“An increase in oil prices helps to improve the company’s profit prospects,” Rafael Ohmachi, an analyst at Guide Investimentos, said from Sao Paulo.
The Ibovespa climbed 0.2 percent to 53,239.18 as 39 of its 66 stocks advanced.
The gauge declined 0.9 percent earlier Tuesday after a bigger-than-forecast drop in Brazil’s retail sales dimmed the outlook for economic growth. Shares of Lojas Renner SA, Brazil’s biggest clothing retailer, and supermarket operator Cia. Brasileira de Distribuicao declined.
Retail sales in Brazil fell 4.5 percent in May from a year earlier, more than the 3.7 percent median estimate from 35 economists surveyed by Bloomberg.
The report added to concern that consumer demand will falter as the economy heads for the worst recession in at least 25 years. The benchmark stock index has slid 8.1 percent from its 2015 peak on concern the economic slump will hurt corporate profits.