Bovespa Futures Rise as Commodities Gain Boosts Export Outlook
Bovespa-index futures advanced as higher commodities prices boosted the outlook for Brazilian exporters amid speculation that central banks around the world will continue with measures to support economic recovery.
BRF Brasil Foods (BRFS3) SA, the world’s biggest poultry exporter, may move after reporting fourth-quarter earnings that missed estimates. Railroad company ALL America Latina Logistica SA (ALLL3) and medical-diagnostics firm Diagnosticos da America SA may be active after both companies posted unexpected quarterly losses.
Bovespa-index futures contracts expiring in April gained 0.4 percent to 56,925 at 9:05 a.m. in Sao Paulo. The real climbed 0.1 percent to 1.9684 per dollar. The Standard & Poor’s GSCI index of 24 raw materials added 0.4 percent.
Global stocks and commodities gained after Federal Reserve Vice Chairman Janet Yellen said the U.S. central bank should press on with $85 billion in monthly bond buying, while Haruhiko Kuroda, the nominee to be Bank of Japan governor, said he would do whatever is needed to end 15 years of deflation. In the euro area, officials indicated that budget policies may be eased after a backlash against austerity plans.
Footwear maker Arezzo Industria (ARZZ3) & Comercio SA may be active after naming Alexandre Cafe Birman chief executive officer. Homebuilder Even Construtora e Incorporadora SA may move after posting sales and profit that beat analysts’ estimates in the fourth quarter.
The Bovespa (IBOV) has dropped 11 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index (MXBRIC) of shares in Brazil, Russia, India and China has slid 4.9 percent over the same period.
Brazil’s benchmark equity gauge trades at 11.6 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index (MXEF) of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 6.52 billion reais ($3.31 billion) yesterday, which compares with a daily average of 7.56 billion reais this year through Mar. 1, according to data compiled by the exchange.
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