Bloomberg News

Ibovespa Rebounds After Four-Day Drop as Gafisa, Suzano Advance

June 13, 2013

The Ibovespa (IBOV) rose for the first time in five days as Gafisa SA (GFSA3) led a rally in Brazilian homebuilders and commodity exporters gained.

Power utility Cia. Paranaense de Energia rose after saying it didn’t make an offer for bankrupt Rede Empresas de Energia Eletrica SA’s assets. Pulpmaker Suzano Papel & Celulose SA gained after Morgan Stanley raised its recommendation on the stock to the equivalent of buy. OGX Petroleo & Gas Participacoes SA tumbled as concern deepened that the company will restructure its debt.

The Ibovespa rose 0.8 percent to 49,563.15 at 11:14 a.m. in Sao Paulo with 44 of its 71 member stocks gaining. The real strengthened 0.8 percent to 2.1397 per dollar, rebounding from a four-year low after the government removed a 1 percent tax charged on bets against the dollar in the futures market.

Gafisa rose 5.1 percent to 3.51 reais. It was the best performance on the BM&F Bovespa Real Estate Index, which gained 0.8 percent. Steelmaker Cia. Siderurgica Nacional SA climbed 3.8 percent to 6.09 reais as the MSCI Brazil/Materials Index advanced the most among 10 industry groups. Copel, as Paranaense de Energia is also known, added 2.9 percent to 33.11 reais.

OGX sank 1.9 percent to 1.02 reais as its bonds due 2018 sank to a record low 40 cents on the dollar. A press official for OGX’s holding company, EBX Group Co., didn’t respond to a request for comment when contacted by Bloomberg News.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus