Suzano Heads to Third Weekly Gain on Real Drop: Sao Paulo Mover
Shares of Salvador-based Suzano rose 1.9 percent to 9.30 reais at 12:55 p.m. in Sao Paulo, extending its weekly gain to 4.8 percent, the most among the 71 stocks on the Ibovespa. The benchmark equity gauge added 0.1 percent, paring a weekly decline to 4.3 percent.
The real slumped 0.9 percent today, extending its plunge this year to 14 percent and driving up the amount of reais that exporters get for their dollars, as a jump in U.S. bond yields lured money away from emerging markets. Exports accounted for more than half of Suzano’s second-quarter revenue.
“Exporters are benefiting from the currency depreciation and their shares have being rising a lot for that reason, especially paper makers,” Pedro Galdi, the chief analyst at the brokerage firm SLW Corretora, said in a phone interview from Sao Paulo. “Revenue in dollars should mean better results for these companies.”
Klabin SA, Latin America’s second-biggest paper maker by sales, rose 0.1% to 12.15 reais, extending its weekly gain to 3.8 percent, the second best performance on the Ibovespa.
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