Brazilian Stocks Rally for Sixth Day, Best Win Streak in Year

By Alexander Ragir

Jan. 6 (Bloomberg) -- Brazilian stocks gained for a sixth day, their longest winning streak in almost a year, as commodity prices advanced on speculation government spending will help ease the global recession.

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, climbed for a fourth day as crude oil increased to a three-week high. Cia. Vale do Rio Doce and Usinas Siderurgicas de Minas Gerais SA rallied on speculation economic stimulus plans from the U.S. and China will spur demand for metals.

“Falling interest rates favor equities and I still think commodity prices will be bolstered by strong infrastructure investment,” said Carlos Eduardo Ramos, who oversees the equivalent of $2.26 billion as chief investment officer of BNY Mellon Arx in Rio de Janeiro. “The economic prospects are bad, but prices are really low and people are readjusting their portfolios for the year.”

The Bovespa Index climbed 384.28, or 0.9 percent, to 41,902.94 at 8:22 a.m. New York time. The gains for the index are the longest since February 2008. The BM&FBovespa MidLarge Cap index rose 1 percent, while the BM&FBovespa Small Cap index gained 0.4 percent. Chile’s Ipsa added 1.1 percent.

The Bovespa’s new year rally has been spurred by tax cuts and global economic stimulus. The U.S. plan aims at boosting the sagging economy by cutting taxes for individuals and businesses and spending money on government programs to rebuild the nation’s infrastructure. China, the world’s largest user of all industrial metals, is allowing tax-free imports of raw materials of metals for processing into exported products.

Petrobras

Petrobras, as the oil company is known, advanced 1.5 percent to 25.47 reais. Crude oil rose to a five-week high above $50 a barrel in New York.

Vale jumped 2.2 percent to 28.61 reais. Copper rose to a one-month high in London and nickel increased 2 percent to $13,100 a ton, taking this year’s gain to 12 percent.

Usiminas, as Brazil’s second-biggest steelmaker is known, gained 1.3 percent to 31 reais. The shares rose 2.9 percent to 28.90 reais. The UBS Bloomberg Constant Maturity Commodity Index of materials from energy and metals to livestock surged for a sixth day, advancing 2.7 percent.

To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;