Ibovespa Gains Most in Week as Global Growth Outlook Boosts Vale

The Ibovespa climbed the most in a week as commodity producers including iron-ore producer Vale SA rallied after a report showing imports increased more than forecast in China eased concern that global growth is slowing.

Phone company Oi SA was the best performer on the gauge. Railroad company ALL America Latina Logistica SA capped its biggest three-day gain since 2009 after Valor Economico newspaper said minority shareholders of Cosan SA Industria e Comercio’s logistics unit favor a merger.

The Ibovespa rose 0.8 percent to 49,696.45 at the close of trading in Sao Paulo, reducing this week’s decline to 2.5 percent. The real rose 1.2 percent to 2.3631 per dollar at 5:22 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials climbed 0.8 percent after a report showed imports in China, Brazil’s top trading partner, increased the most in five months.

“I’m very optimistic on the outlook for the global economy,” Fernando Goes, an analyst at Clear Corretora in Sao Paulo, said in a phone interview. “That’s the main, if not the only, positive for Brazilian equities right now. Domestically, with inflation and interest rates on the rise, things don’t look good at all.”

Consumer prices in Brazil climbed 5.91 percent in December from a year earlier, the national statistics agency said today. That compares with the median estimate of 5.81 percent among economists surveyed by Bloomberg.

Vale, Klabin

Vale added 0.5 percent to 30.09 reais. Paper maker Klabin SA rose 3.9 percent to 12.40 reais, the best performer on the MSCI Brazil/Materials Index. Oil producer Petroleo Brasileiro SA, the heaviest-weighted stock on the Ibovespa, gained 1.7 percent to 15.97 reais. Commodity producers account for 35 percent of the equity index’s weighting, data compiled by Bloomberg show.

ALL rose 3.5 percent to 7.04 reais, extending the three-day rally to 16 percent. The company said in a regulatory filing yesterday that it “constantly evaluates” ways to settle a legal dispute with Cosan’s Rumo Logistica SA that arose after they failed to reach an agreement to combine operations.

Oi jumped 5 percent to 4.22 reais. Brazil’s securities regulator CVM said controlling holders can’t take part in the process of pricing the company’s assets in the merger with Portugal Telecom SGPS, newspaper Valor Economico reported today.

The Ibovespa has tumbled 12 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year and concern mounted that increased government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo was 6.63 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.42 billion reais in 2013, according to data available from the exchange.

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