Ibovespa Advances on Investor Optimism Over Levy in Finance Job

The Ibovespa rose after a government official said Brazil’s President Dilma Rousseff will appoint former Treasury Secretary Joaquim Levy as the next finance minister.

Banco Santander Brasil SA led financial stocks higher, while utility Cia. Energetica de Minas Gerais was the best performer on the benchmark equity index. The gauge pared gains as state-run oil producer Petroleo Brasileiro SA declined after earlier climbing as much as 5.1 percent.

The Ibovespa added 0.3 percent to 55,560.81 at the close of trading in Sao Paulo as 27 of its 70 stocks advanced. Levy will be appointed as soon as Nov. 27 to replace Guido Mantega, Brazil’s longest-serving finance minister, according to an official briefed about the plans who asked not to be identified because discussions aren’t public.

“Levy is a name that pleases a lot of investors because he’s very conservative and a specialist in fiscal adjustments,” Fernando Goes, an analyst at brokerage firm Clear Corretora, said by phone from Sao Paulo. “His team would be able to fix the economy’s main problems at this point.”

A new economic team will face the challenge of restoring growth, slowing inflation and narrowing a budget deficit that threatens Brazil’s investment-grade status.

Santander gained 3.1 percent to 15.42 reais. Cia. Energetica de Minas Gerais climbed 5.3 percent to 13.85 reais, the highest since Nov. 7.

Petrobras, as Petroleo Brasileiro is known, lost 0.4 percent to 14.15 reais. The stock rallied earlier as Citigroup Inc. raised its recommendation on the stock to the equivalent of buy from hold.

The Ibovespa has fallen 10 percent from this year’s high in September. Trading volume of equities in Sao Paulo was 9 billion reais ($3.55 billion) today, according to data compiled by Bloomberg. That compares with a daily average of 7.3 billion reais this year, according to the exchange.

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