The Ibovespa rose for a second straight session as raw-material producers including MMX Mineracao & Metalicos SA followed commodities higher.
The MSCI Brazil/Materials Index climbed to a two-week high. Meatpacker JBS SA rallied after its unit Pilgrim’s Pride Corp. withdrew an offer to buy Hillshire Brands Co. after being outbid by Tyson Foods Inc. State-run Banco do Brasil SA gained after its board approved a plan to buy back shares.
The Ibovespa advanced 0.9% to 53,591.29 at 11:45 a.m. in Sao Paulo. The real added 0.7% to 2.2315 per dollar. The Standard & Poor’s GSCI index of 24 raw materials increased 0.6% after data showing a higher-than-expected increase in China’s exports eased concern that growth in the world’s largest emerging economy is faltering.
“The trade figures from China were positive, and that’s having an impact on commodity companies,” Pedro Galdi, the chief analyst at brokerage firm SLW Corretora, said by phone from Sao Paulo.
China’s overseas sales climbed 7% from a year earlier in May, official data showed, compared with 0.9% growth in the previous month and the median estimate calling for a 6.7% gain in a Bloomberg survey.
MMX gained 3.8% to 2.48 reais.
JBS jumped 4.6% to 7.78 reais. Pilgrim’s said it withdrew its bid for Hillshire after Tyson raised its offer to about $7.7 billion. JBS’s unit had boosted its unsolicited bid for Hillshire to $6.7 billion last week, or $55 per share, topping Tyson’s $50-per-share offer.
Banco do Brasil SA added 1.6% to 24.80 reais, set fo the highest close in a month. Its board approved a plan to buy back as many as 50 million shares over the next year.
The Ibovespa entered a bull market on May 7, surging 20% from this year’s low, as Petroleo Brasileiro SA rallied on speculation a change in government will reduce intervention in state-run companies. The index jumped 3% on June 6, the biggest gain among the world’s largest stock markets, after a poll published by Folha de S.Paulo showed a further drop in support for President Dilma Rousseff’s re-election bid.
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