The Ibovespa rose for the first time in five sessions, with developer BR Properties SA (BRPR3) leading gains, amid speculation the Brazilian benchmark's longest losing streak in six weeks may have been excessive.
Oil company Petroleo Brasileiro SA (PETR4) contributed the most to the gauge's advance as crude climbed. BR Properties SA rose the most since July 2012 after saying it will buy back shares. Phone company Tim Participacoes SA rebounded from a five-week low. Power utility Light SA (LIGT3) rallied after posting third-quarter earnings that beat analysts' estimates.
The Ibovespa added 0.7 percent to 52,623.87 at the close of trading in Sao Paulo, with 44 stocks higher and 27 lower. The gauge had dropped 4 percent in the previous four sessions amid concern that an increase in Brazil's budget deficit would lead to a reduction in the country's credit rating.
"Many of the concerns about Brazil's economic outlook are priced into the Ibovespa already," Alvaro Bandeira, a partner at Orama Asset Management, said in a telephone interview from Rio de Janeiro. "Earnings have been somewhat positive and in line with what you expect from a recovering economy."
Light advanced 0.6 percent to 20.20 reais. The Rio de Janeiro-based utility posted adjusted net income of 321.5 million reais, more than the average estimate of 98.9 million reais among three analysts surveyed by Bloomberg. Half of the 42 companies on the Ibovespa that have already reported third-quarter figures beat estimates, according to data compiled by Bloomberg.
The Ibovespa earlier dropped as much as 0.3 percent. Standard & Poor's, which is evaluating Brazil's BBB credit rating for a 24-month period, could lower the ranking if its fiscal position worsens, Regina Nunes, a director at the company, said in an interview on Nov. 8.Real Estate
Homebuilder MRV Engenharia e Participacoes SA rose 3.6 percent to 8.91 reais.
BR Properties added 5.3 percent to 17.85 reais after saying it will buy back as many as 17 million voting shares over the next six months.
Petrobras, as Petroleo Brasileiro is known, added 2.3 percent to 20.09 reais. Tim gained 3.9 percent to 11.04 reais.
Brazil's benchmark equity index entered a bull market Sept. 9 after rising 20 percent from this year's low on July 3 through that day. The gauge has since pared this gain to 17 percent. Trading volume of stocks in Sao Paulo was 4.87 billion reais today, according to data compiled by Bloomberg. That compares with a daily average of 7.61 billion reais this year through Oct. 22, according to the latest data available from the exchange.