Dec. 27 (Bloomberg) -- The Bovespa stock index gained to a two-week high as data signaling the U.S. economy is continuing to recover lifted oil prices and boosted the outlook for Brazilian producers.
Oil companies Petroleo Brasileiro SA and OGX Petroleo & Gas Participacoes SA followed crude higher. Steelmaker Gerdau SA, which generated 36 percent of its second-quarter revenue from North America, advanced to a six-week high. MRV Engenharia & Participacoes SA led gains by homebuilders as traders increased bets on lower borrowing costs in Brazil.
The Bovespa rose 0.6 percent to 58,005.20 at the close of trading in Sao Paulo. Forty-eight stocks climbed on the index, while 17 fell. The real slid 0.1 percent to 1.8605 per U.S. dollar. Brazil’s benchmark equity gauge has lost 16 percent this year.
“The latest economic data from the U.S. were a bit better than expected, which improves the market’s mood,” Alexandre Ghirghi, who manages about 150 million reais ($80.6 million) at Metodo Investimentos, said from Sao Paulo. “Maybe the Bovespa can recover some of 2011’s losses in the year’s last week.”
Oil increased for a sixth day, the longest stretch in 13 months, after a report showed confidence among U.S. consumers rose in December to the highest level in eight months on an improving job market.
OGX climbed 1.6 percent to 14 reais. Petrobras, as Petroleo Brasileiro is known, gained 0.1 percent to 22.20 reais. Gerdau rose 1.9 percent to 14.82 reais. The Standard & Poor’s GSCI index of 24 raw materials added 1 percent.
In the interest-rate futures market, yields on most contracts fell. Yields on the contract due in January 2013, the most traded today in Sao Paulo, dropped eight basis points, or 0.08 percentage point, to 10.10 percent.
MRV, Brazil’s fifth-biggest homebuilder by revenue, advanced 2.2 percent to 11.15 reais.
Online retailer B2W Cia. Global do Varejo Lojas Americanas SA dropped 1.6 percent to 9 reais, and Lojas Renner SA, Brazil’s biggest publicly traded clothing retailer, fell 1.5 percent to 49.05 reais. A report from consulting firm Serasa Experian showed Brazil’s retail sales in the week before Christmas increased 2.8 percent from a year earlier. In the same period last year, sales rose 16 percent from 2009, Serasa said.
The Bovespa entered a bull market in October after gaining 22 percent from a two-year low on Aug. 8 as interest-rate cuts in Brazil and signs of progress in solving Europe’s debt crisis buoyed demand for equities.
The index trades at 10.2 times analysts’ earnings estimates, in line with the ratio for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.
Traders moved 3.24 billion reais in stocks in Sao Paulo today, data compiled by Bloomberg show. That compares with a daily average this year of 6.56 billion reais through Dec. 15, according to data from the exchange.
--Editors: Richard Richtmyer, Brendan Walsh
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