Ibovespa Advances Third Day as Higher Metals Prices Buoy Vale

The Ibovespa climbed for a third consecutive session as higher metal prices buoyed mining company Vale SA.

Petroleo Brasileiro SA, the state-run oil company, gained for a 10th day in the longest rally since 2003. Retailer Lojas Americanas SA led a gauge of consumer stocks higher, as all 10 industry groups rose. Trucking company JSL SA rose after saying gross sales increased 20 percent in the second quarter from a year earlier.

The Ibovespa rose 0.6 percent to 57,983.32 at the close of trading in Sao Paulo, with 49 of its 70 stocks higher. The index extended a three-day advance to 4.2 percent after a voter poll showed reduced support for President Dilma Rousseff’s bid for re-election amid a stalled economy.

“The trend for the Ibovespa is still positive,” Fernando Goes, an analyst at brokerage firm Clear Corretora, said by phone from Sao Paulo. “Everybody is trying to figure out what the fair price would be for an eventual victory for the opposition candidate in the election.”

The Bloomberg Base Metals 3-Month Price Commodity Index advanced 0.7 percent as a standoff over a downed jet in Ukraine eased. Commodity producers account for about a third of the Ibovespa’s weighting. Brazil’s real strengthened 0.5 percent to 2.2106 per dollar at 5:20 p.m. local time.

Vale, the world’s largest iron-ore producer, advanced 1 percent to 28.54 reais. JSL climbed 0.9 percent to 11 reais after earlier today jumping as much as 1.7 percent. Lojas Americanas rose 4.3 percent to 14.95 reais, the highest level since January 2013.

Utility Gains

Eletropaulo Metropolitana SA rose 3.6 percent to 11.44 reais, leading gains by power utilities, after Romeu Rufino, the head of Brazil’s electricity regulator known as Aneel, said the government is considering a loan to help the industry pay for rising energy prices this year.

The Ibovespa has rallied 29 percent from this year’s low on March 14 as Petrobras jumped on speculation that a change in government will reduce intervention in state-owned companies. The shares in the oil producer gained 0.7 percent to 21.05 reais today, pushing a 10-day advance to 22 percent.

Trading volume of equities in Sao Paulo was 7.05 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.55 billion reais this year, according to data from the exchange.

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