Most Brazilian Stocks Rise as Eletrobras Gain Outweighs PDG Drop
Most Brazilian stocks gained as state-run Centrais Eletricas Brasileiras SA (ELET6) led power utilities higher, outweighing a decline by homebuilders before a meeting at which policy makers are expected to boost borrowing costs.
Phone company Oi SA (OIBR4) gained after Brazil’s securities regulator lifted a suspension of its share offering that’s part of a plan to merge with Portugal Telecom SGPS SA. Steelmaker Usinas Siderurgicas de Minas Gerais SA followed metals higher. PDG Realty (PDGR3) SA was the worst performer among homebuilders.
The Ibovespa rose 0.4 percent to 50,455.59 at 10:44 a.m. in Sao Paulo, with 57 stocks rising and 14 falling. The real weakened 0.6 percent to 2.2747 per dollar. State-run companies have gained recently on speculation that President Dilma Rousseff’s re-election in the October ballot may be at risk as polls show a decline in her approval rating, said Pedro Galdi, the chief analyst at brokerage firm SLW Corretora.
“The way state-run companies have been managed under Dilma’s administration drove shares down, and we’ve seen a rebound since speculation started to mount about her chances,” Galdi said in a phone interview from Sao Paulo.
Approval of Rousseff’s way of governing fell to 51 percent in March from 56 percent in December, an Ibope poll published by the National Industry Confederation showed last week. The Ibovespa has gained 12 percent since this year’s low on March 14.
Usiminas, as Usinas Siderurgicas is known, gained 1.3 percent to 10.07 reais. Oi jumped 3.8 percent to 2.99 reais. PDG Realty fell 1.4 percent to 1.41 reais. Centrais Eletricas Brasileiras added 1.8 percent to 6.87 reais.
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