BRASILIA--Brazil's Bovespa stock index advanced strongly to end
higher Friday, lifted by large gains from local private oil
heavyweight OGX and still moderate monthly inflation data.
The main Sao Paulo index advanced 2.7% to 53,749 points. Volume
was moderate, with 8.1 billion Brazilian reais ($3.5 billion) in
shares changing hands.
Traders noted the index began the session extending a recent
rally after the country's IPCA consumer-price index for August
failed to fuel concerns over stronger-than-projected interest-rate
tightening ahead.
The country's IBGE statistics institute reported inflation of
0.24% in August, leaving 12-month inflation still below the
country's target ceiling at 6.1%.
Analysts noted local inflation rates still appeared to be
leaving margin for profitability, especially in commodities-related
industries.
"If, on one hand, price increases stoke inflation, on the other
hand they help boost the revenues of companies that produce in
these sectors," said Paulo Gala, strategist at Banco Fator.
Meanwhile, the star performer of the session was private oil and
gas company OGX Petroleo e Gas Participacoes SA (OGXPY, OGXP3.BR),
whose ordinary shares rose 24.4% to BRL0.51 after the company took
the surprise step of demanding $1 billion in fresh capital from its
controlling shareholder, Eike Batista.
Also advancing strongly Friday was local airline Gol Linhas
Aereas Inteligentes SA (GOL, GOLL4.BR), which rose 12.8% to
BRL10.66 on a report the country's secretary of civil aviation
could unveil measures to help struggling airlines deal with rising
dollar-denominated fuel costs. Gol shares have suffered in recent
months from the effect of local currency as the company has about
60% of costs tied to the dollar.
In the meantime, banking sector shares were higher, with leading
retail bank Itau-Unibanco SA (ITUB, ITUB4.BR) up 2.0% to BRL29.99
and rival Banco Bradesco SA (BBD, BBDC4.BR) up 2.0% to
BRL28.66.
Materials sector shares ended the day slightly lower, with
mining giant Vale SA (VALE, VALE5.BR) down 0.3% to BRL32.22, and
steelmaker Gerdau SA (GGB, GGBR4.BR) down 0.9% to BRL16.85.
Elsewhere, telecom heavyweight Oi SA (OIBR, OIBR4.BR) rose 2.3%
to BRL3.96, state-controlled oil company Petroleo Brasileiro SA
(PBR, PETR4.BR) rose 1.2% to BRL7.75 and ordinary shares of plane
manufacturer Embraer SA (ERJ, EMBR3.BR) fell 0.2% to BRL19.68.
All quotes refer to companies' preferred shares, unless
otherwise stated.
Write to Gerald Jeffris at gerald.jeffris@wsj.com
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