Ibovespa Gains on Speculation Meirelles to Be Named Finance HeadNey Hayashi
The Ibovespa rose for the first time this week on speculation former banker Henrique Meirelles will be picked as Brazil’s next finance minister.
Brewery Ambev SA contributed the most to the gauge’s advance. Homebuilder Even Construtora e Incorporadora SA rallied after posting third-quarter earnings that beat analysts’ estimates.
The Ibovespa added 1 percent to 52,978.89 at the close of trading in Sao Paulo after falling as much as 0.6 percent earlier today. Meirelles, who served as central bank chief from 2003 to 2010 under President Dilma Rousseff’s predecessor, Luiz Inacio Lula da Silva, is a favorite for the job, Reuters reported, citing sources close to the government.
“Given his track record in the central bank, he’s seen as someone who could help the government to regain trust,” Joao Pedro Brugger, who helps oversee about 500 million reais ($194.8 million) as a portfolio manager at Leme Investimentos, said by phone from Florianopolis, Brazil. “Among the people whose names have been cited in the press as possible ministers, Meirelles is the only one that could really push markets higher.”
Chances have increased that Rousseff will choose Meirelles because she is aware that he would help boost investor confidence, Bloomberg reported yesterday, citing a person familiar with the matter who spoke to the president and requested not to be named because the discussions were private.
Rousseff, who was re-elected on Oct. 26 for a second four-year term, said she will appoint after the G20 summit this weekend a replacement for Finance Minister Guido Mantega, who she said will step down for personal reasons. Investors see the selection of her top economic adviser as a gauge of whether she is willing to undo policies that widened the budget deficit and fueled inflation.
Ambev added 2.3 percent to 16.37 reais today. Even jumped 12 percent to 5.33 reais. Competitor Rossi Residencial SA added 11 percent to 92 centavos before releasing quarterly results tomorrow.