Ibovespa Rises to Two-Week High as Petrobras, Eletrobras Rally
The Ibovespa climbed to a two-week high as Petroleo Brasileiro SA (PETR4) led gains among state-controlled companies on speculation a poll will show diminished support for President Dilma Rousseff’s re-election.
Power utility Centrais Eletricas Brasileiras SA (ELET6), which is also run by the federal government, extended a three-day gain to 10 percent. Water company Cia. de Saneamento Basico do Estado de Sao Paulo dropped the most on the index after UBS AG lowered its recommendation to sell.
The Ibovespa rose 0.7 percent to 46,889.21 at 11:30 a.m. in Sao Paulo, with 49 stocks falling and 22 rising. The real strengthened 0.4 percent to 2.3408 per U.S. dollar.
“There’s a lot of room for a rebound for the shares if indeed the opposition wins the election,” Pedro Galdi, the head strategist at brokerage SLW Corretora in Sao Paulo, said in a phone interview.
Polling company Ibope’s press office said a survey on Brazil’s elections scheduled for October may be published today. An Ibope survey published Feb. 21 in the Estado de S. Paulo newspaper showed Rousseff’s government approval rating fell to 39 percent from 43 percent in December.
Petrobras gained 2.9 percent to 13.73 reais. The stock has tumbled 50 percent since Rousseff took office in January 2011 as fuel subsidies ordered by the government cut into the company’s profit. Eletrobras rose 5.2 percent to 10.15 reais. Sabesp sank 5.1 percent to 20.12 reais.
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