Ibovespa Climbs in Longest Rally Since October; Bradesco Rises

The Ibovespa rose, extending its longest rally since October, as an increase in commodity prices buoyed prospects for Brazilian exporters.

Lender Banco Bradesco SA led a rally among Brazilian banks after Credit Suisse Group AG recommended buying the stock. For-profit college operator Anhanguera Educacional Participacoes SA declined on speculation Brazil’s antitrust regulator won’t allow its merger with Kroton Educacional SA to go forward. State-run oil producer Petroleo Brasileiro SA paced gains in the MSCI Brazil/Energy Index, which rose the most among 10 industry groups.

The Ibovespa added 1.3 percent to 47,993.42 at the close of trading in Sao Paulo in its sixth consecutive advance. Fifty-three stocks gained while 20 fell. The real was little changed at 2.3247 per dollar at 5:20 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials climbed 0.1 percent, bolstering the raw-materials producers that account for 33 percent of Ibovespa’s weighting.

“This has been a tough year for commodity prices and producers, so this increase gives a little relief for Brazilian exporters,” Fernando Goes, an analyst at brokerage firm Clear Corretora, said in a phone interview from Sao Paulo. “The market’s mood seems to have improved a little.”

Bradesco’s voting shares rose 3.7 percent to 30.50 reais, its highest level since Jan. 8. Petrobras, as Petroleo Brasileiro is known, advanced 2.7 percent to 14.40 reais in its longest rally since September.

Banks’ Rally

Banks are “a little oasis in the desert” of the Brazilian economy, Marcelo Telles, an analyst at Credit Suisse, wrote in a note to clients dated today. “Even in a more challenging scenario for volumes resulting from lackluster economic growth, private-sector banks should deliver good top line and earnings per share growth.”

Meatpacker JBS SA climbed 2.6 percent to 7.87 reais. The company is expected to report to report fourth-quarter results today after the market close.

Anhanguera declined 1.1 percent to 12.29 reais. Veja magazine reported that chances for the Kroton-Anhanguera merger to succeed are shrinking after Brazil’s antitrust regulator suggested that the companies sell some distance-learning schools so that the deal can be approved.

Brazil’s benchmark equity gauge entered a bear market on March 14 after falling 20 percent from its October high through that day. The gauge has since pared the drop to 15 percent.

Trading volume of stocks in Sao Paulo was 5.7 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.36 billion reais this year, according to data from the exchange.

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