- Ibovespa fluctuates as banks’ slump overshadows Tim’s advance
- Vale among best performers on Ibovespa amid higher ore price
Tim Participacoes SA was among the best performers on Brazil’s Ibovespa stock benchmark after reporting financial results that bolstered investor optimism.
The Ibovespa closed lower after swinging between a 0.8 percent advance and a 0.3 percent drop. Retailer Lojas Renner SA rebounded from a 10-day low after earnings also topped analysts’ estimates. Miner Vale SA benefited from a jump in iron-ore prices. Itau Unibanco Holding SA and Banco Bradesco SA, Brazil’s biggest banks, contributed the most to the gauge’s drop.
Investors are closely watching second-quarter results for signs the economy may be reaching a turning point amid the worst recession in a century. Brazil’s benchmark equity index is the best performer in the world this year on bets that Acting President Michel Temer will be able to trim a budget deficit, kick-start growth and bolster investor confidence. Four of the seven companies that have already released their earnings posted revenue that beat forecasts.
"The numbers are expected to signal how resilient the businesses are and provide a better basis to project the rebound of the country," Vitor Suzaki, an analyst at the brokerage Lerosa Investimentos, said from Sao Paulo.
The Ibovespa fell 0.2 percent to 56,782.75 at the close of trading in Sao Paulo, as 34 of the gauge’s 59 stocks declined. Tim rallied 3.8 percent after it reported quarterly sales that beat analysts’ estimates and said it’s cutting capital expenditures. Bank of America Corp. on Tuesday raised its recommendation on the stock to buy from neutral. Vale added 4.3 percent. Itau lost 1.3 percent, and Bradesco fell 0.8 percent. Renner closed little changed after jumping as much as 3.2 percent.