Brazil's Stocks Rebound as Commodity Gain Supports Steelmakers

  • CSN, Gerdau lead an advance among raw-materials producers
  • Cielo rises after shareholders said to give up on acquisition

The Ibovespa rebounded from a three-day slump as a global rally in commodity prices helped provide some relief to battered Brazilian exporters.

Steelmakers Cia. Siderurgica Nacional SA and Gerdau SA were among the best performers on an industry gauge, while state-controlled oil producer Petroleo Brasileiro SA followed crude higher. Credit-card processor Cielo SA rebounded from its biggest drop in five years as controlling shareholders Banco do Brasil SA and Banco Bradesco SA were said to give up on the acquisition of competitor Elavon Inc.’s Brazil unit.

The rebound Friday helped the Ibovespa to pare its biggest weekly decline in a month. Emerging-market securities have tumbled for most of the week, pushing global equities into a bear market on concern central banks worldwide may not have the tools they need to combat economic slowdowns.

"The mood is much better across the board today, and Brazilian stocks are benefiting from that too," Vitor Suzaki, an analyst at the brokerage Lerosa Investimentos, said from Sao Paulo.

The Ibovespa advanced 1.3 percent to 39,808.05 at the close of trading in Sao Paulo as 40 of its 61 stocks rose. The steelmaker known as CSN added 3.6 percent, and Gerdau climbed 0.8 percent. Iron ore producer Vale SA jumped 2 percent. Petrobras, as Petroleo Brasileiro is known, advanced 5.2 percent.

The MSCI Brazil/Materials index climbed 0.6 percent. The Standard & Poor’s GSCI index of commodities rose 4.2 percent, and West Texas Intermediate crude for March delivery advanced 11 percent to $29.15 a barrel. Commodity producers account for about 20 percent of Ibovespa’s weighting.

Cielo added 4.1 percent, Banco do Brasil fell 0.5 percent and Bradesco climbed 0.3 percent. The banks backed off from the deal after antitrust regulators signaled they would impose restrictions before approving the deal, according to two people familiar with the matter.

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