Ibovespa Extends Best Month Since 1999 Amid Impeachment Wagersby
Brazil’s biggest party abandons Rousseff as ouster vote nears
State-owned oil producer Petrobras rises for third session
The Ibovespa extended its best monthly advance since 1999 after news that Brazil’s biggest political party formally left the governing coalition bolstered speculation that support for President Dilma Rousseff’s ouster will increase.
Lenders Banco Bradesco SA and Itau Unibanco Holding SA contributed the most to the rally in Brazil’s benchmark equity index. Car-rental company Localiza Rent a Car SA led gains among companies that depend on domestic demand.
Stocks climbed after PMDB’s departure added to speculation that the decision may tip the balance against Rousseff, prompting other parties to follow suit. The Ibovespa has rallied 20 percent in March on speculation that Rousseff is heading for impeachment amid Brazil’s worst recession in more than a century, double-digit inflation and soaring unemployment.
"The possibility that Rousseff will be ousted is the hope that the market is hanging on to," Vitor Suzaki, an analyst at brokerage Lerosa Investimentos in Sao Paulo. "We should see more volatility on the market as the impeachment process is long and difficult."
The Ibovespa advanced 0.6 percent to 51,154.99 at the close of trading in Sao Paulo as 40 of its 61 stocks climbed. Equities rallied across the Americas after Federal Reserve Chair Janet Yellen signaled that the central bank remains wary of raising rates amid threats to American growth from a slowing global economy.
State-owned oil producer Petroleo Brasileiro SA extended a three-day gain to 9.1 percent. Bradesco added 1.7 percent, Itau rose 0.6 percent and Localiza jumped 3.9 percent.
The Ibovespa fell earlier Tuesday as crude declined for a fourth day and copper retreated with most metals on speculation that lower demand from China will weaken prices further.