Bovespa Index Rises for Second Day as Commodity Gain Lifts CSN
The Bovespa (IBOV) index rose for a second straight day as higher commodity prices boosted the outlook for Brazilian raw-material producers amid optimism U.S. lawmakers will reach an agreement in budget talks.
Steelmaker Cia. Siderurgica Nacional SA led gains by producers after Banco Santander SA raised its recommendation on the stock to buy. Oil company Petroleo Brasileiro SA and iron- ore producer Vale SA contributed the most to the gauge’s advance.
Brazil’s benchmark equity index rose 0.6 percent to 56,875.85 at 10:29 a.m. in Sao Paulo. Forty-three stocks climbed on the measure while 23 fell. The real was little changed at 2.0942 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials added 0.9 percent.
“The sentiment around the world is more positive, pushing the Bovespa higher,” Luis Gustavo Pereira, an analyst at Futura Corretora in Sao Paulo, said in a phone interview. “Commodities are rising, so producers should perform well today.”
U.S. stock-index futures rose as Republican House Speaker John Boehner said yesterday he is optimistic that talks on implementing tax increases and spending cuts can “avert this crisis sooner rather than later.” President Barack Obama said he’s looking to reach a deal before Christmas.
CSN, as Cia. Siderurgica is also known, rallied 3.2 percent to 10.41 reais. Petrobras advanced 1.7 percent to 18.96 reais, and Vale rose 1.2 percent to 35.65 reais.
The Bovespa has climbed 7.7 percent from this year’s low on June 5 as stimulus from central banks around the world eased economic concern and borrowing costs at a record low in Brazil boosted equity demand. The index trades at 10.5 times analysts’ earnings estimates for the next four quarters, which compares with the ratio of 10.7 times for MSCI Inc.’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
To contact the reporter on this story: Ney Hayashi in Sao Paulo at email@example.com