The busiest month for Brazilian initial public offerings in five years saw Banco do Brasil SA and Gol Linhas Aereas Inteligentes SA raise cash by selling stakes in units amid the worst stock decline in emerging markets this year.
The Bovespa posted the worst performance among major equity indexes in the Americas after Citigroup Inc. lowered its forecast for Brazil’s benchmark gauge, citing “anemic” economic growth and faster inflation.
The Bovespa index had the biggest two-day gain among the world’s major stock gauges as companies owned by the Brazilian billionaire Eike Batista surged after he signed a financing arrangement with Grupo BTG Pactual.
Brazilian mining companies, banks, homebuilders and transportation companies will likely eclipse gains for retailers, which have led this year’s advance in Latin America’s largest market, Goldman Sachs Group Inc. said.
Carlos Slim ’s Mexican holdings from mining to communications helped him beat Bill Gates and Warren Buffett on the stock market for the second straight year, and gains in 2011 may widen his lead atop the global wealth list.
Brazil’s Bovespa stock index will gain 16 percent to a record 78,000 by yearend as “obstacles” are removed, including presidential elections and Petroleo Brasileiro SA ’s share sale, Goldman Sachs Group Inc. said.
Developing-nation stocks rose, sending the MSCI Emerging Markets Index to a five-month high, as consumer and technology shares advanced amid signs corporate earnings growth will weather a U.S. economic slowdown.