Ibovespa Futures Rise as Iron Ore Rally Bolsters Vale OutlookDenyse Godoy
Ibovespa futures rose as an increase in prices for iron ore bolstered the outlook for Brazilian mining companies including Vale SA.
Water utility Cia. de Saneamento Basico do Estado de Sao Paulo, known as Sabesp, may be active after federal prosecutors warned the company it risks running out of water within 100 days if it doesn’t ration supplies. Shopping-center manager Multiplan Empreendimentos Imobiliarios SA may move as second-quarter profit exceeded analysts’ estimates.
Ibovespa futures contracts due in August added 0.2 percent to 58,050 at 9:18 a.m. in Sao Paulo. Brazil’s real lost 0.2 percent to 2.2271 per dollar. Iron ore for immediate delivery rose 1.1 percent to $95.30 a ton, according to a measure compiled by The Steel Index Ltd.
The Ibovespa has rallied 29 percent from this year’s low on March 14 as oil producer Petroleo Brasileiro SA jumped on speculation that a change in government will reduce intervention in state-owned companies.
Trading volume of equities in Sao Paulo was 4.9 billion reais yesterday, compared with a daily average of 6.5 billion reais this year, according to data from the exchange.