Brazils stocks jumped to a six-month high on Thursday as higher oil and metals prices lifted heavyweights Petrobras and Vale, while Itau and Bradesco charged higher following a rally in global banking stocks. The Bovespa index of the Sao Paulo stock exchange rose 3.07 percent to 45,538.71 points, trading at its strongest level since October 2.
The index rose 0.8 percent the previous session. At the stock exchange, state-run energy company Petrobras gained 4.44 percent to 30.84 reais as crude oil prices jumped more than 5 percent in New York. Mining giant Vale climbed 5.02 percent to 29.70 reais, tracking gains of more than 3.5 percent in copper and other metals. Vale and Petrobras account for nearly a third of the Bovespas weighting.
In the financial sector, BM&F Bovespa, which operates the countrys largest securities exchanges, gained 4.52 percent to 8.55 reais buoyed by a rally in global banking shares. Itau Unibanco, Latin Americas largest bank by assets, rose 3.36 percent to 29.25 reais, while Bradesco was up 4.05 percent to 26.45 reais.
Bucking the trend in financial stocks, federally owned Banco do Brasil dropped 2.82 percent to 16.86 reais. Itau Securities cut its recommendation for the stock to sector perform from outperform, while Deutsche Bank cut its recommendation on Banco do Brasil to hold from buy, after Brazils government replaced the banks chief executive.
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