Brazil Stocks Advance Early; Petrobras, Banks Gain

By Gerald Jeffris

BRASILIA--Brazil's Bovespa stocks index rose in early trading Monday with a lift from improved data abroad and positive performance from heavyweight state controlled oil company Petrobras and key local banks.

As of 8:10 a.m. EST, the main Sao Paulo index was 0.2% higher at 50,1616 points.

Shares prices advanced among many companies on the exchange, taking momentum from an improved mood following a firm rise in activity reported in Europe, where that region's composite PMI rose to 52.1 from 51.7 the previous month.

The signal of a recovery in Europe was seen as a possible boon for the commodities sector, including key metals and mining shares.

Oil heavyweight Petrobras, meanwhile, took a lift from rising global oil prices that reflected in part an impasse over re-opening of oil terminals in Libya.

The local banking sector also advanced, getting momentum from talk that key public bank Banco do Brasil could sell some of its property assets.

In early trading Monday, Petrobras' shares (PETR4.BR) rose 0.8% to 17.15 Brazilian reais ($7.36).

In the mining and steel sector, mining giant Vale (VALE, VALE5.BR) rose 0.1% to BRL34.35, while steelmaker Gerdau (GGB, GGBR4.BR) was up 0.1% to BRL17.90.

Among banks, Banco do Brasil rose 0.5% to BRL24.23, and leading private bank Itau (ITUB4.BR) was up 0.3% to BRL31.05.

Elsewhere, fixed-line telecom Oi (OIBR4.BR) rose 0.6% to BRL3.57, and leading airline Gol (GOLL4.BR) advance 4.0% to BRL9.63.

Write to Gerald Jeffris at [e-mail]

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