Bovespa Advances to Week High as PDG, OGX Realty ReboundNey Hayashi
The Bovespa index rose to a one-week high as homebuilder PDG Realty SA Empreendimentos & Participacoes rallied amid speculation earlier losses were excessive given a positive outlook for its business.
OGX Petroleo & Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, advanced after posting a net loss in the fourth quarter that was less than analysts had forecast.
The Bovespa climbed 0.2 percent to 55,787.97 at 12:14 p.m. in Sao Paulo. A close at that level would be the highest since March 20. Thirty-seven stocks sank on the gauge while 30 advanced. The real gained 0.3 percent to 2.0113 per dollar.
“Trading near 55,000, the Bovespa is cheap,” Rodolfo Amstalden, an analyst at consulting firm Empiricus Research, said by phone from Sao Paulo. “PDG reported awful earnings in the fourth quarter, but investors may be buying now thinking about the long-term perspectives for the company. Looking at the next 18 to 24 months, the outlook for the industry as a whole, PDG included, is positive.”
PDG Realty gained 5.1 percent to 3.12 reais. The stock earlier tumbled as much as 4.4 percent after it reported an unexpected net loss of 1.79 billion reais in the fourth quarter.
OGX, the worst-performing stock this year on the Bovespa index, gained 3 percent to 2.37 reais. The company posted a net loss of 264.3 million reais in the three months ending in December, which compares with the average estimate for a loss of 302.5 million among analysts surveyed by Bloomberg.