Ibovespa Advances as Brazil Election Speculation Buoys Petrobras

The Ibovespa climbed for the first time in four days as investors awaited an election poll amid speculation that a change in government will reduce intervention in state-owned companies.

Oil producer Petroleo Brasileiro SA contributed the most to the gauge’s advance. Steelmaker Gerdau SA fell the most in a week as quarterly profit trailed analysts’ estimates.

The Ibovespa added 0.2 percent to 57,209.50 at 10:29 a.m. in Sao Paulo, with 37 of its 70 stocks rising. Shares also gained after data showed the U.S. economy rebounded more than forecast in the second quarter.

The benchmark stock gauge has rallied 27 percent from this year’s low on March 14 as Petrobras jumped on speculation that President Dilma Rousseff will lose her re-election bid in October. Diario do Grande ABC may publish a new presidential election poll today.

Petrobras added 1.2 percent to 19.86 reais today. Gerdau slumped 1.5 percent to 13.52 reais, the most since July 18.

Trading volume of equities in Sao Paulo was 5.5 billion reais yesterday, compared with a daily average of 6.5 billion reais this year, according to data from the exchange.

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