Ibovespa Climbs on Commodities, Impeachment Bets as Tim Rallies

  • Petrochemical group Braskam gains most among materials stocks
  • Lender Bradesco contributes most to the equity index's gain

The Ibovespa climbed as exporters benefited from a rise in commodity prices, helping to extend recent gains fueled by bets that President Dilma Rousseff is heading for impeachment.

Lender Banco Bradesco SA contributed the most to the benchmark equity gauge’s advance on Monday. Petrochemical group Braskem SA led gains among raw-materials producers, and phone carrier Tim Participacoes SA rallied after the chief executive officer of its parent company resigned.

Brazil’s stocks have surged 18 percent this year as traders bet that a possible Rousseff ouster could pave the way for a new government that’s better able to cut spending, bolster state finances and help pull Latin America’s biggest economy out of its worst recession in more than a century. Recent increases in commodities prices are adding to the good mood, buoying raw-materials producers that account for about a fifth of the Ibovespa’s weighting.

"The gain in commodities helps Brazilian stocks today," Jason Vieira, the chief economist at Infinity Asset Management, said from Sao Paulo. "But politics will continue to be the main driver for local assets."

The Ibovespa added 0.7 percent to 51,171.55 at the close of trading in Sao Paulo as 43 of its 61 stocks rose. Bradesco gained 1.7 percent and Braskem advanced 2.5 percent. The Standard & Poor’s GSCI index of commodities climbed 0.3 percent.

Tim rallied 4.1 percent after Vivendi SA was successful in its push to oust Telecom Italia SpA’s chief executive. Vivendi, the Italian company’s biggest investor, is looking for a new leader for the phone carrier to oversee a push into content and forge stronger ties with media companies in southern Europe.

Pressure for legislators to oust Rousseff has increased in recent days. An opinion survey published by the Datafolha polling firm Saturday showed that support for impeachment rose to 68 percent, up from 60 percent in February. Latin America’s biggest economy is forecast to shrink 3.6 percent this year, according to a weekly survey by the central bank published Monday.

State-controlled oil producer Petroleo Brasileiro SA declined 0.7 percent before the scheduled release of fourth-quarter results. Adjusted net income is forecast to have dropped by almost half in the three months through December, according to a poll of analysts.

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