Ibovespa Rises to 11-Week High as Marfrig Leads Exporter Advance
The Ibovespa advanced to an 11-week high as meatpacker Marfrig Global Foods SA (MRFG3) led Brazilian exporters higher amid eased concern that the global economic recovery will falter.
Cia. de Saneamento Basico do Estado de Sao Paulo, the water utility known as Sabesp, rose after posting fourth-quarter earnings that beat analysts’ estimates. Iron-ore producer Vale SA (VALE5) contributed the most to the benchmark equity gauge’s gain. The MSCI Brazil/Materials Index was the best performer among 10 industry groups.
The Ibovespa climbed 1.2 percent to 50,368.73 at 10:33 a.m. in Sao Paulo, paring this quarter’s slump to 2.2 percent. The real slipped 0.6 percent to 2.2737 per U.S. dollar today. The MSCI All-Country World index rose 0.7 percent after data showing inflation in the euro area was slower than forecast in March spurred speculation that policy makers will take further steps to boost the region’s economy.
“If the European Central Bank indeed acts to strengthen the economy, that could boost investors’ demand for risk, helping to sustain the Ibovespa’s rebound,” Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil SA in Sao Paulo, said in a phone interview.
Marfrig advanced 3.1 percent to 4.38 reais. Sabesp increased 3 percent to 21.19 reais. Vale gained 2.2 percent to 28.43 reais today.
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