By Jeffrey T. Lewis
SAO PAULO--Brazilian shares closed little changed Friday, with
meat packer JBS rising after Moody's revised its outlook for the
company, and the real strengthened against the dollar.
The benchmark Ibovespa stocks index rose 0.1% to 55902 points.
The real exited active trading at 2.2598 to the dollar, according
to Tullett Prebon via FactSet, after closing at 2.2680 on
Thursday.
JBS, the world's biggest meat packer, had its ratings affirmed
at Ba3 by Moody's Investors Service, which changed its outlook for
the Brazilian company to stable from negative. JBS shares rose 5.3%
to 8.79 reais.
The real strengthened after weakening against the dollar over
the previous two days. The real closed at 2.2313 to the dollar
Tuesday, and lost ground against the U.S. currency Wednesday and
Thursday after good economic news from the U.S. that sparked
concern about bigger dollar outflows from the South American
country.
The real is likely to stay near its current level as long as
international events don't spur greater risk aversion, said
Wanderlei Muniz, a trader at the Onnix brokerage in Porto
Alegre.
"Importers and exporters are okay with the real where it is," he
said. "There's a lot happening, in the U.S., in Argentina, Israel,
that could change things quickly, though, and people are avoiding
making big bets" on the real's direction right now.
The positive economic-growth news from the U.S. on Wednesday
also pushed the Ibovespa lower during the past few days. On Friday,
Brazilian shares closed mixed.
Other food companies' shares rose along with JBS, with Marfrig
gaining 1.2% to 6.70 reais, and BRF climbing 3.2% to 57.25
reais.
Iron miner Vale's shares fell 2% to 28.54 reais, and oil company
Petrobras fell 0.5% to 19.01 reais.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
