The Brazilian stocks ended higher for the third straight day on Friday. The Sao Paulo Stock Exchange's benchmark Bovespa index edged up 0.05 percent to 31,102.3 points after two days of strong gains, with healthy financial volume of 2.17 billion reais, up from the October average of 1.9 billion.
Traders said the mood in the market was upbeat after President Luiz Inacio Lula da Silva publicly defended Finance Minister Antonio Palocci, who has been beating back corruption allegations and criticism of his austere economic policies.
Market bellwether Tele Norte Leste Participacoes edged up 0.38 percent to close at 40.10 reais, and heavyweight state-run oil company Petrobras rose 0.58 percent to 32.70 reais.
But No 2 private bank Itau was off 3.22 percent to close at 55.60 reais after an auction to place 9.8 million shares on the exchange on Friday.
The IPO of the Cosan Group, the world's largest producer of cane sugar and ethanol, on the Bovespa's Novo Mercado was a success. After the over subscribed share prices was set at 48 reais but rose 15.83 percent through the day to close at 55.60 reais.