Brazil stocks gain on thin volume; real stronger

SAO PAULO, May 31 (BestGrowthStock) – Brazilian stocks rose early
on Monday as commodity-related shares advanced, with holidays
in the United States and the UK thinning trading.

The benchmark Bovespa stock index (.BVSP: ) put on 0.84
percent to 62,470.10, after slipping in the previous session on
the heels of a choppy week.

“Things are getting attractive again,” said Debora Morsch,
chief executive of Solidus brokerage. “Foreign investors will
be coming back.”

Brazilian stocks have suffered as a sovereign debt crisis
in Europe led jittery investors to dump riskier assets around
the world. The Bovespa index lost almost 14 percent from its
close on April 8 through its close on Friday.

Brazil’s currency, the real (BRBY: ), firmed 0.22 percent to
1.806 per dollar, as the greenback crept up against a basket of
major currencies (.DXY: ).

On the Bovespa index, heavyweights Vale and Petrobras led
gains.

Mining giant Vale (VALE5.SA: ), the world’s largest producer
of iron ore, put on 1.55 percent to 42.60 reais. The company
will raise iron ore prices about 35 percent to as much as $145
per tonne in July as part of a switch to quarterly pricing, a
Brazilian newspaper reported on Sunday. [ID:nN30230578]

Shares of state-controlled energy company Petrobras
(PETR4.SA: ), the most active stock in the index, rose 1.56
percent to 28.64 reais as crude oil (CLc1: ) gained 0.69
percent.

Rival oil and gas company OGX (OGXP3.SA: ) climbed 0.4
percent to 16.12 reais.

Trade in shares of steelmaker CSN (CSNA3.SA: ) was suspended
in the morning after the exchange asked the company for more
information about a debt dispute.

Rival steelmaker Gerdau (GGBR4.SA: ) advanced 2 percent to
24.91 reais. Usiminas (USIM5.SA: ) traded up 0.29 percent to
45.43.

Technical problems at the Sao Paulo exchange kept interest
rate futures contracts (0#DIJ:: ) from trading early in the
session.

The yield on the contract due January 2011 (DIJF1: ) edged
down to 10.98 percent from 10.99 percent shortly after
opening.

A weekly central bank survey showed that inflation
expectations in Brazil could be leveling off.

Local economists kept their forecasts for the year-end
benchmark IPCA consumer price index steady, at 5.67 percent,
for the first time after 18 weeks of raising their forecasts.
[ID:nN31137396]

Nevertheless, that forecast is still above the central
bank’s 2010 inflation target of 4.5 percent, plus or minus 2
percentage points.

Money

(Reporting by Luciana Lopez; Editing by Padraic Cassidy)

Brazil stocks gain on thin volume; real stronger