Jan. 3 (Bloomberg) -- The Bovespa jumped to a four-week high as a commodities rally lifted producers while Brazilian homebuilders gained after PDG Realty SA Empreendimentos & Participacoes said fourth-quarter contracted sales rose 16 percent.
Oil producer Petroleo Brasileiro SA and mining company Vale SA, the gauge’s two heaviest-weighted stocks, followed crude and metals higher. Petrobras, as Petroleo Brasileiro is known, also said it found crude and natural gas of “excellent quality” at the Tambuata well in the Golfinho field off the country’s Southeastern coast. The MSCI Brazil/Materials index posted the best performance among 10 industry groups.
Crude and industrial metals advanced after India’s Purchasing Managers’ Index rose the most in six months in December, according to HSBC Holdings Plc and Markit Economics, and a manufacturing index in China signaled expansion. A report from the Institute for Supply Management showed manufacturing in the U.S. expanded in December at the fastest pace in six months.
The Bovespa advanced 2.5 percent to 59,264.87 at the close of trading in Sao Paulo, the highest since Dec. 6. Fifty-four stocks climbed on the index, while 13 fell. The real rose 2.2 percent to 1.8307 per U.S. dollar.
“Brazilian stocks are tracking global markets,” Mirela Rappaport, who helps manage 200 million reais ($109 million) at Investport in Sao Paulo, said in a phone interview. “The U.S. economy has shown some signs of recovery for the past few months, and European countries have been more successful selling bonds. In a better global environment, the Bovespa could post a better performance.”
Petrobras advanced 3.9 percent to 22.41 reais. Vale, the world’s largest iron-ore producer, jumped 4 percent to 40.47 reais.
Crude advanced as much as 4.4 percent. The Standard & Poor’s GSCI index of 24 raw materials gained 3.4 percent.
PDG, Brazil’s biggest homebuilder by revenue, rose 1.9 percent to 6.35 reais after earlier adding as much as 4.8 percent. Fourth-quarter contracted sales jumped 16 percent to 2.04 billion reais from a year earlier, according to a regulatory filing. The results were “strong” and highlighted the company’s “ability to maintain sales speed at very high levels,” Credit Suisse Group AG analysts including Guilherme Rocha wrote in a note to clients today.
Brookfield Incorporacoes SA, Brazil’s fourth-largest real- estate company by revenue, rose 6.4 percent to 5.69 reais, the best performer on the BM&FBovespa Real Estate Index, which advanced 2.6 percent.
The Bovespa has gained 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 gauge trades at 10 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 6.41 billion reais in stocks in Sao Paulo today, data compiled by Bloomberg show. That compares with a daily average in 2011 of 6.51 billion reais through Dec. 27, according to data from the exchange.
--Editors: Richard Richtmyer, Glenn J. Kalinoski
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