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

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

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

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

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

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.

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


(Reporting by Luciana Lopez; Editing by Padraic Cassidy)

Brazil stocks gain on thin volume; real stronger