Brazil’s main stock index rose, led by mining company Vale SA, as data showing foreign investors pulling money out of shares for the first time in 2015 fostered doubts that the Ibovespa is on the cusp of a rally.
“I don’t think the rally has any legs,” Jason Vieira, the chief economist at Infinity Asset Management, said by phone from Sao Paulo. “There’s only bad news on the economic front, and Brazil is at risk of losing its investment-grade status.”
Brazilian stocks have been trending lower since early May as President Dilma Rousseff grapples with an anemic economy amid impeachment talks and a widening graft probe at the state-controlled oil producer. Brazil’s equity market suffered net international outflows of 567.9 million reais ($162.6 million) last month, the most since December, according to data compiled by BM&FBovespa.