Ibovespa Posts Biggest Two-Day Gain Since 2012 as Vale Rises

The Ibovespa posted its biggest two-day gain since 2012 as raw-material producers including Vale SA followed commodities higher.

The MSCI Brazil/Materials Index climbed to a three-week high. Meatpacker JBS SA rallied as its unit Pilgrim’s Pride Corp. withdrew an offer to buy Hillshire Brands Co. after being outbid by Tyson Foods Inc. State-run Banco do Brasil SA gained after its board approved a plan to buy back shares.

The Ibovespa advanced 2.2 percent to 54,273.16 at the close of trading in Sao Paulo, extending its two-day rally to 5.3 percent. The real added 0.7 percent to 2.2310 per dollar at 5:22 p.m. local time. The Standard & Poor’s GSCI index of 24 raw materials increased 0.7 percent after a report showing a higher-than-expected increase in China’s exports eased concern that growth in the world’s largest emerging economy is faltering.

“The trade figures from China were positive, and that’s having an impact on commodity companies,” Pedro Galdi, the chief analyst at brokerage firm SLW Corretora, said by phone from Sao Paulo.

China’s overseas sales increased 7 percent in May from a year earlier, compared with a 0.9 percent growth in the previous month and the median estimate calling for a 6.7 percent gain in a Bloomberg survey.

Vale added 1.8 percent to 26.61 reais. MMX Mineracao & Metalicos SA advanced 3.3 percent to 2.47 reais.

Unsolicited Bid

JBS jumped 6.3 percent to 7.91 reais. Pilgrim’s said it withdrew its bid for Hillshire after Tyson raised its offer to about $7.7 billion. JBS’s unit had boosted its unsolicited bid for Hillshire to $6.7 billion last week, or $55 per share, topping Tyson’s $50-per-share offer.

Banco do Brasil added 2.9 percent to 25.11 reais, the highest since November. Its board approved a plan to buy back as many as 50 million shares over the next year.

The Ibovespa entered a bull market on May 7, surging 20 percent from this year’s low, as Petroleo Brasileiro SA rallied on speculation a change in government will reduce intervention in state-run companies.

The index jumped 3 percent on June 6 in the biggest gain among the world’s largest stock markets after a poll published by Folha de S.Paulo showed a further drop in support for President Dilma Rousseff’s re-election bid.

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