Ibovespa Futures Rise After Drop in Index to Lowest Since August
Ibovespa futures climbed on speculation last week’s drop in the Brazil benchmark equity index to the lowest level since August would be hard to sustain.
Power utilities CPFL Energia SA (CPFE3) and Transmissora Alianca de Energia Eletrica SA may be active after Goldman Sachs Group Inc. recommended buying the stocks. Scaffolding manufacturer Mills Estruturas e Servicos de Engenharia SA may move after announcing a plan to invest 231 million reais ($97 million) in 2014.
Ibovespa futures contracts expiring in February rose 0.3 percent to 48,090 at 9:42 a.m. in Sao Paulo. The real gained 0.3 percent to 2.3915 per dollar after economists raised their 2014 forecasts for Brazil’s target lending rate.
The Ibovespa has tumbled 15 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year and concern mounted that higher government spending will lead to a reduction in the country’s credit rating.
Trading volume of stocks in Sao Paulo was 6.77 billion reais on Jan. 24, which compares with a daily average of 6.28 billion reais this month, according to data from the exchange.
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