Ibovespa Rises Most in Two Months as Lojas Americanas, B2W Rally

The Ibovespa climbed the most in two months as retailer Lojas Americanas SA and its unit B2W Cia. Digital gained after posting quarterly earnings results that were better than analysts estimated.

Power utility Cia. Paranaense de Energia rallied as it announced a dividend payment of 325 million reais ($140 million). Steelmaker Cia. Siderurgica Nacional SA and homebuilder Brookfield Incorporacoes SA climbed after reporting quarterly earnings.

The Ibovespa rose 2.3 percent to 53,451.60 at the close of trading in Sao Paulo, with 67 of its 72 member stocks higher. The gauge is up 2.3 percent this week. Brazilian markets will be closed tomorrow for a holiday. The MSCI World Index added 0.7 percent at 2:26 p.m. in New York after Federal Reserve chairman nominee Janet Yellen said the U.S. economy must improve before monetary stimulus is pared.

“We had some companies that reported good earnings among the top performers today, pushing the index higher,” Luis Gustavo Pereira, a strategist at Futura Corretora brokerage in Sao Paulo, said in a phone interview. “Stocks are also reacting to Yellen’s remarks about the stimulus program in the U.S.”

Lojas Americanas climbed 5.7 percent to 16.15 reais. The company posted adjusted net income of 97 million reais in the third quarter, more than the average estimate of 93 million reais, according to data compiled by Bloomberg. B2W, which posted a loss that was less than analysts had forecast, jumped 12 percent to 14.70 reais.

CSN, as Cia. Siderurgica is known, added 3.6 percent to 12.62 reais. Brookfield advanced 1.8 percent to 1.14 reais.

Earnings Surprises

Thirty of the 59 Ibovespa member companies that have reported third-quarter earnings beat forecasts, with brewer Ambev SA and utility Light SA posting the biggest positive surprises, data compiled by Bloomberg show.

Education company Anhanguera Educacional Participacoes SA rose 10 percent to a record high 15.19 reais after saying it estimates 300 million reais in synergies once its merger with Kroton Educacional SA is concluded. Kroton climbed 2.2 percent to 38 reais.

Global stocks advanced after Yellen said in testimony before a U.S. Senate committee she will ensure the bond-buying program that has helped boost demand for emerging-market assets won’t be tapered before the U.S. economy is strong enough.

“It’s important not to remove support, especially when the recovery is fragile and the tools available to monetary policy, should the economy falter, are limited given that short-term interest rates are at zero,” she said.

The real rose 0.7 percent to 2.3180 per U.S. dollar.

Copel Dividend

Copel, as Cia. Paranaense is known, jumped 9.8 percent to 33.19 reais. The utility will pay a dividend and interest on capital of 1.25 reais per share to holders of the class B preferred stock.

Brazil’s main equity index entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge has since pared gains to 19 percent.

Trading volume of stocks in Sao Paulo was 7.16 billion reais today, data compiled by Bloomberg show. That compares with a daily average of 7.61 billion reais this year through Oct. 22, according to the latest data available from the exchange.

Before it's here, it's on the Bloomberg Terminal.