Ibovespa Rises as Market Value Heads to Biggest Jump Since 2006

  • Rally in March adds $104 billion to Brazil's equity value
  • Advance also sends valuation to highest level since June

Brazil’s stocks climbed, adding to a rally that’s pushing their value toward the biggest monthly increase since 2006, amid speculation there will be a change in government.

The benchmark Ibovespa has jumped 25 percent in dollar terms in March, the most among 93 world equity gauges tracked by Bloomberg. The surge this month through Thursday already added $104 billion to the value of Brazilian shares, according to data compiled by Bloomberg. Brazilian assets have gained on speculation that President Dilma Rousseff will be impeached and her Workers’ Party will be forced out of power, sending stock valuations based on forecast earnings to the highest since June.

Investors are cheering the prospect that there will be a change in government as an investigation into accusations that the state oil company funneled money to members of Rousseff’s party mount. On March 4, Rousseff’s predecessor and mentor, Luiz Inacio Lula da Silva, was detained for questioning in the corruption probe. Going into the weekend, with protests against the government planned for Sunday, investors are largely sitting on the sidelines, said Ignacio Crespo, an analyst at brokerage Guide Investimentos in Sao Paulo. 

“We’re on the eve of a very important weekend,” he said. “Investors are more cautious. We don’t see any movement that’s very clear.”

The Ibovespa rose 0.1 percent to 49,638.68 the close of trading in Sao Paulo, after earlier falling as much as 0.8 percent. Lenders Banco Bradesco SA and Banco do Brasil SA contributed the most to the gauge’s advance while oil producer Petroleo Brasileiro SA posted the longest rally since July 2014.

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