Ibovespa Leads Gains in Americas on Growth Report as CSN RalliesNey Hayashi
The Ibovespa led gains in the Americas, climbing to a four-month high, after government data showed the economy unexpectedly expanded and as steelmaker Cia. Siderurgica Nacional SA climbed with commodities.
All 10 groups in the MSCI Brazil index advanced, with energy companies posting the biggest increase. Petroleo Brasileiro SA surged before releasing long-delayed earnings from 2014. Even Construtora e Incorporadora SA paced a rally in homebuilders. The Ibovespa added 1.7 percent to 54,918.74 at the close of trading in Sao Paulo, extending the advance from a bear-market low reached Jan. 30 to 17 percent.
Investors are boosting wagers on Brazilian equities as government pledges to shore up fiscal accounts eases concern that its credit rating will be cut. Economic activity rose 0.36 percent in February from the prior month, the central bank said Wednesday. The median forecast of economists surveyed by Bloomberg was a 0.20 percent drop.
“A few months ago, there was too much pessimism in the markets, with equities more than pricing in the bad news,” Raphael Figueredo, an analyst at Clear Corretora, said in a phone interview from Sao Paulo. “Now the trend is more positive. The index is moving closer to 56,000 or 57,000.”
CSN, as Cia. Siderurgica is known, surged 8.6 percent to 6.34 reais, the most since Feb. 9. The Standard & Poor’s GSCI index of 24 raw materials gained 3.1 percent as oil and metals increased. Commodities producers account for about 25 percent of the Ibovespa’s weighting.
Petrobras, as Petroleo Brasileiro is known, gained 6.7 percent to 13.33 reais. The producer, which said Monday its board will review financial statements in an April 22 meeting, has postponed the release of third-quarter results since November amid a lack of consensus over the size of writedowns linked to a corruption probe.
Even jumped 3.8 percent to 4.69 reais.
The Ibovespa entered a bear market Dec. 12 amid concern that Rousseff will struggle to revive growth and curb inflation during her second four-year term. Trading volume of equities in Sao Paulo was 10 billion reais ($3.3 billion) on Wednesday, according to data compiled by Bloomberg. That compares with a daily average of 6.71 billion reais this year, according to the exchange.
(An earlier version of this story was corrected to change period of economic report.)