Lojas Renner SA, Brazil’s biggest publicly traded clothing retailer, rose to a one-week high on speculation the company will report an increase in first-quarter profit.
Renner gained 2.3 percent to 41.50 reais in Sao Paulo trading, the highest price since April 22.
“We expect Brazilian companies to report strong first quarter 2010 earnings, stemming from a combination of a weak comparison base and robust economic momentum,” wrote Marcelo Audi, an analyst at Banco Santander SA in Sao Paulo. Renner’s earnings after the market closes today will likely boost the stock, he wrote in a note to clients.
Net income at Renner in the first three months of this year almost tripled to 31.2 million reais ($18 million) from 10.9 million reais a year-earlier, according to the average of nine estimates compiled by Bloomberg.
Companies whose “earnings releases are expected to cause the strongest positive impact on their respective stocks” include airline Gol Linhas Aereas Inteligentes SA (GOLL4), clearinghouse Cetip SA - Balcao Organizado de Ativos e Derivativos, refractory-tile maker Magnesita SA and Vale SA (VALE5), the world’s biggest iron-ore producer, Audi wrote.
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