Petroleo Brasileiro SA rallied after the appointment of a new chief executive officer for the beleaguered state-controlled oil producer. The Ibovespa fluctuated.
Petrobras, as Petroleo Brasileiro is known, advanced as Pedro Parente, the former president of agribusiness giant Bunge Ltd.’s Brazil unit, was named to lead the company at the heart of a graft scandal that has implicated some of the country’s most prominent business leaders and politicians. The producer accounts for about 8 percent of the Ibovespa’s weighting.
“An improvement in the performance of Petrobras is positive for the Brazilian economy as a whole, because its operations affect many other companies and sectors,” said Raphael Figueredo, an analyst at brokerage Clear Corretora in Sao Paulo. “The other positive message is that a more professional management is replacing one that was determined by political reasons.”