Bovespa Rises as Fibria Rallies With Global CommoditiesNey Hayashi
The Bovespa index snapped its longest losing streak in nine months as exporters including pulp producer Suzano Papel & Celulose SA rallied amid optimism the global economy is poised to improve.
Poultry exporter BRF Brasil Foods SA rose after its board nominated Abilio Diniz, an executive with decades of experience in the industry, to be chairman. Paper maker Klabin SA rebounded from a one-month low after its quarterly profit beat analysts’ estimates. Gafisa SA jumped the most since October, leading homebuilders higher.
The Bovespa rose 1 percent to 56,697.06 at the close in Sao Paulo, the first gain in eight days. The gauge has trailed most major emerging-market stock benchmarks this year amid concern Brazil’s accelerating inflation will sap an economic recovery that has been stunted by the government’s interventionist policies in industries including utilities and energy.
While Brazilian inflation, which quickened to a 6.2 percent annual pace in mid-February, remains a concern, improving prospects for the global economy may support a stock rebound this year, said Henrique Kleine, the chief analyst at Magliano SA brokerage.
This year “will probably be a better year for the world economy, and as it becomes more clear, investors may start going back to stocks,” Kleine said in a phone interview from Sao Paulo. “The outlook for the Bovespa is positive.”
The MSCI All-Country World index rose 0.7 percent as German business confidence climbed more than forecast after the Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, jumped to 107.4 from 104.3 in January. That’s the biggest increase since July 2010 and the fourth straight monthly gain. Economists surveyed by Bloomberg predicted an advance to 104.9.
Brasil Foods, Klabin
Forty-eight stocks gained on the Bovespa today while 18 fell. The real was little changed at 1.9727 per U.S. dollar. Brazil’s swap rates rose after a report showed consumer prices increased more than economists forecast in the first half of February.
Brasil Foods gained 5.1 percent to 43.61 reais. Naming Diniz as chairman is “positive” for the company because of his experience in the retail business, analysts at Banco Bradesco SA’s brokerage unit including Ricardo Boiati wrote in a note to clients. Diniz is currently the chairman at Cia. Brasileira de Distribuicao Grupo Pao de Acucar, the country’s biggest retailer.
Klabin, Latin America’s biggest paper maker, rose 2.1 percent to 13.23 reais, rebounding from a one-month low. The company posted adjusted net income of 146.5 million reais, above the average analyst forecast of 126.4 million reais, according to data compiled by Bloomberg.
OGX Petroleo & Gas Participacoes SA fell 0.3 percent to 3.59 reais after climbing as much as 8.9 percent earlier. Valor Economico reported that controlling shareholder Eike Batista is in talks to sell a stake in the oil producer, without saying where it got the information. An OGX press official in Rio de Janeiro declined to comment.
Suzano surged 6.5 percent to 6.57 reais. Bigger rival Fibria Celulose SA rose 4 percent to 22.34 reais. Gafisa jumped 8.4 percent to 4.24 reais, the biggest advance in the index.
Cosan SA Industria e Comercio, which shares control of the world’s biggest sugar-cane processor, fell 0.5 percent to 45.74 reais after a union official said a strike by dock workers at the port of Santos disrupted the loading of some ships.
The Bovespa has dropped 10 percent from this year’s high on Jan. 3, while the MSCI BRIC Index of shares in Brazil, Russia, India and China has declined 3.7 percent in the same period. The Brazilian stock gauge trades at 11 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 9.09 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.45 billion reais this year through Feb. 20, according to data compiled by the exchange.