Shares of education companies, homebuilders that cater to lower-income Brazilians and retailers were among the best performing names on the benchmark Ibovespa equity index. The currency reversed earlier losses to post the biggest advance in emerging markets, while the country’s overseas bonds were mostly steady.
State-owned companies including Petroleo Brasileiro SA and Banco do Brasil SA were among the worst stocks, dragged down by speculation that a privatization push during Bolsonaro’s administration would be abandoned under Lula. Some investors also were seeking more details on Lula’s cabinet picks, particularly his economy minister, before buying in.
Education company Yduqs Participacoes SA rallied for a seventh session. Anima Holding SA jumped as much as 10% after Morgan Stanley upgraded it to the equivalent of buy from hold. Lula is expected to increase funding for education, providing a boost to the companies.