Ibovespa Rises for Fifth Week as Petrobras Follows Crude’s Gainby
State-owned oil producer advances to highest in one year
Utility Cesp rises most since 2008 amid privatization talks
The Ibovespa posted its fifth consecutive weekly advance as state-controlled oil producer Petroleo Brasileiro SA followed gains in oil prices.
Power utility Cia. Energetica de Sao Paulo rallied the most since 2008 after Sao Paulo state said it’s considering privatizing the company. For-profit college managers Kroton Educacional SA and Estacio Participacoes SA gained after setting a date for the shareholder meeting that will vote on the merger of their businesses. Steelmaker Usinas Siderurgicas de Minas Gerais SA climbed to its highest since May 11.
Brazilian equities have gained 55 percent in dollar terms this year, the world’s best performance, amid optimism that Acting President Michel Temer will be able to pull Latin America’s largest economy out of recession, encouraging investors to buy stocks.
"The trend for the Ibovespa is still up," Ari Santos, a trader at the brokerage H.Commcor, said from Sao Paulo. "The market is very positive on the prospects for Brazil’s recovery."
The Ibovespa gained 0.2 percent to 55,578.24 at the close of trading in Sao Paulo as 34 of its 59 stocks advanced. This week, the gauge climbed 4.6 percent. Petroleo Brasileiro added 0.8 percent to 11.02 reais, the highest in one year, as oil gained 0.6 percent in New York. Kroton added 1.2 percent, and Estacio climbed 1.2 percent. Cesp surged 19 percent.