Brazil’s Stocks Advance as Currency Drop Buoys Pulp Producers

  • Suzano, Fibria are among best performers on the Ibovespa
  • State-controlled Petrobras followed a decline in crude prices

The Ibovespa trimmed its second consecutive weekly decline as the weakening of the Brazilian currency buoyed pulp producers, offsetting a slump by state-controlled oil producer Petroleo Brasileiro SA.

Suzano Papel e Celulose SA and Fibria SA, which get most of its revenue from exports, were among the best performers on the benchmark equity index.

Brazil’s real depreciated, extending the worst performance among major currencies this week, as political concerns dimmed expectations that a new economic team named by acting President Michel Temer will be able to quickly revive Latin America’s biggest economy, which is facing its worst recession in a century.

"Exporters are benefiting from the real today, but caution is the watchword on the market," Raphael Figueredo, an analyst at the brokerage Clear Corretora, said from Sao Paulo.

The Ibovespa added 0.3 percent to 49,624.12 at 11:57 a.m. in Sao Paulo as 40 of its 59 stocks climbed. Suzano gained 2.2 percent, Fibria advanced 2.4 percent. Petrobras, as Petroleo Brasileiro is known, fell 2.5 percent. Trading volume was 13 percent below the five-day average as Wednesday was a holiday in Brazil.

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