Ibovespa Posts Sixth Weekly Rally as BRF Jumps on IPO ReportBy
Food processor is said to consider selling shares in unit
Car-rental operator Localiza rallies after earnings beat
The Ibovespa gained for a sixth consecutive week after a report that food processor BRF SA is considering selling stock in a unit, ending an almost two-year drought in equity sales.
BRF contributed the most to the index’s advance. The company is speaking with advisers locally about potentially selling shares in its Sadia Halal unit in 2017, according to people familiar with the matter. Car-rental company Localiza Rent a Car was the best performer on the gauge after earnings topped analysts’ estimates.
Brazilian shares capped their longest weekly winning streak since October 2010 on speculation that Acting President Michel Temer will be able to pull Latin America’s largest economy from its worst recession in a century.
"The news about BRF shows that companies are becoming more positive on the prospects for the country, and that’s great for the markets," said Paulo Henrique Amantea, an analyst at brokerage Guide Investimentos, in Belo Horizonte, Brazil.
The Ibovespa advanced 0.6 percent to 57,002.08 at the close of trading in Sao Paulo as 40 of its 59 stocks advanced. BRF added 2.2 percent, snapping a three-day rout. Localiza jumped 5.5 percent, the most in three months. The gauge’s gains were limited, though, as miner Vale SA fell with iron-ore prices.