Ibovespa Advances as Brazil Quarterly GDP Growth Bolsters MRV
The Ibovespa rose, adding to its biggest monthly gain this year, as MRV Engenharia e Participacoes SA led homebuilders higher after Brazil’s economy expanded at a faster pace than forecast in the second quarter.
Companies owned by former billionaire Eike Batista, including oil producer OGX Petroleo e Gas Participacoes SA, were among the best performers on the gauge today. B2W Cia. Digital extended this month’s rally to 29 percent.
The Ibovespa added 0.8 percent to 50,315.94 at 10:23 a.m. in Sao Paulo, with all but three stocks on the 71-member index advancing. The gauge is up 4.6 percent this month, trimming its decline this year to 17 percent. The real was little changed at 2.3602 per dollar today. Brazil’s gross domestic product grew 1.5 percent in the second quarter from the previous three-month period, the national statistics agency said today. Economists surveyed by Bloomberg had forecast an expansion of 0.9 percent.
“Stocks were pricing in a lot of problems in the Brazilian economy, so any news that signals things may not be so bad spurs a rebound,” Alexandre Ghirghi, a portfolio manager at Metodo Investimentos in Sao Paulo, said in a phone interview.
MRV added 1.7 percent to 8.36 reais. OGX jumped 6 percent to 53 centavos after falling 38 percent in the previous three sessions. B2W rose 2.4 percent to 13.63 reais.
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