Brazil’s Stocks Rise With Petrobras, Vale as Commodities Advanceby
Nine of 10 best performers are related to raw materials
Gains in commodities overshadowed concern over economy
Brazil’s stocks joined gains in emerging markets as a rally in commodities bolstered the outlook for producers including oil giant Petroleo Brasileiro SA and miner Vale SA.
Nine of the 10 best performers on the Ibovespa were related to the raw-material industry. The Bloomberg Commodity Index added 0.6 percent as oil, gold and copper jumped. The rally outweighed a central bank survey showing analysts predict further contraction for Latin America’s largest economy.
“The commodity move today is outweighing news regarding the economy as investors await measures from the new government to address the fiscal deficit and the recession,” said Jason Vieira, the chief economist at Infinity Asset Management in Sao Paulo.
Traders have pushed up the value of Brazilian shares this year on speculation that a new administration would pave the way for measures to revive the economy and curb a ballooning budget deficit. Regaining investors’ trust is a key goal for Michel Temer, who assumed the presidency on May 12 after a Senate vote that brought Dilma Rousseff closer to impeachment and forced her to step down.
The Ibovespa rose 0.5 percent to 52,081.12 at 11:41 a.m. in Sao Paulo, extending this year’s surge to 20 percent. Petrobras and Vale gained at least 3.9 percent.