Brazil's Ibovespa rose on Monday to the highest level in almost two years as an advance in crude oil lifted the shares of Petrobras while estimates for a faster economic recovery fueled bets on companies that rely on domestic demand.
Retailer Cia. Brasileira de Distribuicao, known as Pao de Acucar, gained on a gauge of consumer stocks. Petrobras contributed the most to the index’s advance. Power utility CPFL Energia SA rose as State Grid Corp. of China reached a deal to take control of the company, according to people with knowledge of the matter.
Improved prospects for exports and increased confidence in Acting President Michel Temer’s ability to shore up Brazil’s finances have prompted analysts to raise their gross domestic product forecasts for Latin America’s biggest economy this year and next. Optimism that the economy will soon rebound has helped fuel gains of 35% for the Ibovespa this year.
The Ibovespa reached 58,654.06 in Sao Paulo as 46 of its 59 stocks gained. Pao de Acucar rose 1.3%, and Petrobras climbed 2%. CPFL gained 1.5%.
On Monday, Credit Suisse Group AG cut its estimates for the recession in 2016 to 3% from 3.5%. It also raised the projection for growth next year to 0.8% from 0.5%, citing ”the expectation of a more positive scenario for the Brazilian economy in the next few years.