Ibovespa Caps Best Monthly Rally Since March as Petrobras Gains

The Ibovespa capped its biggest monthly gain since March, rising with emerging-market stocks, as Petroleo Brasileiro SA rebounded from its worst week this year.

Brewery AmBev SA contributed most to the gauge’s advance today, paring a monthly decline to 0.6 percent. Beef producer JBS SA snapped three days of losses. Mining company MMX Mineracao & Metalicos SA slid the most on the benchmark index.

The Ibovespa rose less than 0.1 percent to 53,168.22 at the close in Sao Paulo, extending its June rally to 3.8 percent. The gauge has climbed 5.5 percent this quarter and is up 3.2 percent in 2014 on speculation a change in government will reduce intervention in state-run companies.

“Stocks continue to climb on the back of voting polls,” Joao Pedro Brugger, who helps oversee 520 million reais as a portfolio manager at Leme Investimentos, said by phone from Florianopolis, Brazil. “Even Petrobras, with the large drop last week, is still up significantly this month. Flows to developing nations are also benefitting some emerging markets, including Brazil.”

Emerging-market stocks rose 5.6 percent this quarter as asset managers have piled almost $11 billion into developing-nation exchange-traded funds listed in the U.S., the most since 2012, on optimism economic growth in countries such as China and India will rebound.

Petrobras, Ambev

Petrobras rose 0.5 percent to 17.29 reais today, rebounding from the biggest weekly decline since December after saying on June 27 that it will save $18 billion in discovery costs after buying rights to one of country’s top two finds. The shares gained 3.6 percent this month.

AmBev added 1.4 percent to 15.76 reais today. JBS climbed 2.3 percent to 7.60 reais. MMX dropped 6.9 percent to 2.03 reais.

Trading volume of stocks in Sao Paulo was 5.2 billion reais today, according to data compiled by Bloomberg. That compared with a daily average of 6.61 billion reais this year, according to data from the exchange.

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