Ibovespa futures fluctuated between gains and losses amid speculation that China, Brazil’s top trading partner, will take further steps to cool the economy.
Paper maker Klabin SA may be active after Goldman Sachs Group Inc. lowered its recommendation to sell. Braskem SA, Latin America’s largest petrochemicals producer, was raised to the equivalent of buy at Banco Itau BBA SA. Homebuilder MRV Engenharia & Participacoes SA may move after extending a share buyback program for one year.
Ibovespa futures contracts expiring in August added 0.2 percent to 49,630 at 9:52 a.m. in Sao Paulo after earlier falling as much as 0.5 percent. The real gained 0.4 percent to 2.1721 per dollar, strengthening for the first time in four days. Chinese stocks dropped as money-market rates surged and investors speculated the government will step up property curbs.
The Ibovespa plunged into a bear market last week after falling more than 20 percent from this year’s peak in January on concern that accelerating inflation will curb the recovery in Latin America’s largest economy.
Brazil’s benchmark equity gauge trades at 11.9 times analysts’ earnings estimates for the next four quarters, which compares with a multiple of 10.1 for the MSCI Emerging Markets Index of 21 developing nations’ equities.
Trading volume for stocks in Sao Paulo was 6.73 billion reais ($3.09 billion) yesterday, compared with a daily average of 7.85 billion reais this year through June 14, according to data compiled by the exchange.
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