The Ibovespa rose the most among the world’s major benchmarks as oil producer Petroleo Brasileiro SA (PETR3) led a rally in state-controlled companies after a poll showed reduced support for President Dilma Rousseff’s re-election.
Cosmetics seller Natura Cosmeticos SA was the best performer among consumer stocks after a report showed slower-than-forecast inflation in Brazil. Planemaker Embraer SA (ERJ:US) slumped to a eight-week low as the real climbed amid speculation that a Rousseff defeat would be beneficial to Brazil’s economy.
The Ibovespa climbed 2.1 percent to 52,155.28 at the close of trading in Sao Paulo, with 46 of its 73 members higher. Petrobras, the heaviest-weighted stock on the index, rallied as much as 6.6 percent to 16.46 reais, contributing the most to the gauge’s advance. State-run lender Banco do Brasil SA (BBAS3) added 5.6 percent to 24.90 reais. Centrais Eletricas Brasileiras SA (ELET6), the federally controlled power utility, climbed 3.1 percent to 7.40 reais, extending their gain in 10 days to 25 percent.
“Rousseff’s management of Petrobras has been horrible for the company’s performance and for its shareholders, so investors get very excited with every sign that the government may change,” Paulo Brito, an investment manager at the brokerage firm HPN Invest, said by phone from Recife, Brazil. “Everybody is very disappointed and dissatisfied with most of her policies.”
Rousseff’s press office declined to comment, according to an e-mailed response to questions.
Support for Rousseff fell to 38 percent from 44 percent in February in a Datafolha poll released on April 5 that pitted her against opposition candidates Aecio Neves and Eduardo Campos. She still had more than the level of backing a candidate would need to win the first round of voting this year because the other two were little changed in the polling.
The Ibovespa (IBOV) surged 3.5 percent on March 27, when a survey conducted by CNI-Ibope showed that Rousseff’s approval rating fell for the first time since protests in June pushed her popularity to a record low.
Stocks also advanced as swap rates, a gauge of expectations for interest-rate moves, fell on most contracts after a report showed inflation was slower than estimated in March. Wholesale, construction and consumer prices as measured by the IGP-DI index rose 1.48 percent last month from February, the Getulio Vargas Foundation reported. The median forecast of 24 economists surveyed by Bloomberg was for a 1.59 percent increase.
Natura gained 4.5 percent to 39.80 reais. It was the best performance on the MSCI Brazil/Consumer Staples Index, which rose 1.3 percent.
The real gained 0.7 percent to 2.2196 per U.S. dollar at 5:32 p.m. local time. Embraer fell 2.8 percent to 19.34 reais, its lowest price since Feb. 10.
Brazil’s benchmark equity gauge entered a bear market March 14 after falling 20 percent from its October high through that day. The gauge has since gained 16 percent as state-owned companies rebounded.
Trading volume of stocks in Sao Paulo was 7.46 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 6.53 billion reais this year, according to data from the exchange.
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