Brazil stocks gain most in week as oil rebounds; Mexico rises
Brazilian stocks rose the most in a week as a rebound in commodity prices spurred gains for the market's two biggest companies, Petroleo Brasileiro SA and Cia. Vale do Rio Doce, Bloomberg reported.
Petrobras, as the state-controlled company is known, climbed for the first time in five days after crude advanced more than 6 percent. Vale gained 3 percent as the world's biggest iron-ore producer was recommended by global fund managers. Eletropaulo Metropolitana SA jumped the most in 10 days after the Brazilian unit of AES Corp. received a favorable tax ruling.
"We'll likely see strong purchases in emerging markets in 2009, especially if you consider that the macroeconomic situation in Brazil looks very good in comparison with the rest of the world," said Joao Pedro Brugger, equity analyst at Leme Investimentos in Florianopolis, Brazil, which oversees about $35 million. "Investors are anticipating this movement. And you have some really cheap companies."
The Bovespa index climbed 393.35, or 1.1 percent, to 36,864.13. The index slid 5.8 percent this week. Brazil's markets were closed the last two days because of a holiday. Mexico's Bolsa rose 0.8 percent, while Chile's Ipsa climbed 0.5 percent.
Petrobras added 80 centavos to 22.80 reais after oil prices gained 6.5 percent to $37.63. Petrobras and Galp Energia SGPS SA discovered oil in an onshore well in Brazil's Espirito Santo Basin. The oil was found at a depth of 1,045 meters (3,429 feet), using the Drillfor-04 rig in the ES-T-88 block, according to the Web site of Brazil's petroleum agency. The companies each own 50 percent of the block and didn't say if oil can be economically pumped from the well, which is operated by Petrobras.