Ibovespa Gains for Fifth Session as Vale Leads Commodity Gains

  • Steelmakers Gerdau, CSN also among index’s biggest gainers
  • Export prospects offset worse-than-forecast Brazil retail data

The Ibovespa rose for a fifth consecutive session as Vale SA led a rally in Brazilian commodities stocks after prices for iron ore jumped.

Accounting for about six percent of the gauge’s weighting, Vale contributed the most to the advance. Steelmakers Gerdau SA and Cia. Siderurgica Nacional SA were the biggest gainers on Brazil’s benchmark equity index. State-controlled oil producer Petroleo Brasileiro SA, known as Petrobras, advanced with crude prices.

Brazilian stocks extended this year’s best-in-the-world rally this year as prices for the country’s commodity exports rose Tuesday amid speculation that global central banks will add to monetary stimulus. Iron ore’s biggest gain in 11 weeks offset data showing that retail sales in Latin America’s largest nation unexpectedly fell as the country struggles to recover from the deepest recession in a century.

“There are still many uncertainties regarding the timing of the rebound, but investors have been encouraged lately by the outlook for sales abroad,” Paulo Figueiredo, an economist at FN Capital in Petropolis, Brazil, said. “Exporters should support the country’s gross domestic product while internal demand doesn’t accelerate.”

The Ibovespa added 0.5 percent to 54,256.41 at the close of trading in Sao Paulo as 30 of its 59 stocks rose. Vale climbed 3.5 percent, and Petrobras advanced 2.8 percent. Materials and energy companies make up for 22 percent of the Ibovespa’s weighting. Trading volume of the gauge’s stocks was 13 percent higher than average over the past 10 days.

Shopping center manager Multiplan Empreendimentos Imobiliarios SA fell the most in a month after data showed retail sales dropped 1 percent in May, while the median estimate from 34 economists surveyed by Bloomberg was for a 0.4 percent increase.

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