RIO DE JANEIRO, April 17 (Reuters) - Brazilian financial markets rallied late on Thursday on hopes that President Dilma Rousseff would lose support in an opinion poll, increasing the chances of a more market-friendly government in 2015.
Brazil’s Bovespa stock index closed 1.8 percent higher while the real erased early losses to rise 0.2 percent as investors bet Rousseff would lose ground in the run up for the country’s presidential elections in October.
After markets closed, pollster Ibope confirmed market expectations, saying that Rousseff’s personal disapproval rate outstripped her approval rate for the first time in the survey.
According to Ibope, the number of Brazilians who disapprove of Rousseff jumped to 48 percent from 43 percent while those who approve of her fell to 47 percent from 51 percent.
The number of Brazilians intending to vote for Rousseff also dropped to 37 percent from 40 percent. That is still enough for the president to win an outright re-election, however.
Shares of state-run companies that are more vulnerable to government intervention rallied on hopes of policy change. Petrobras’ preferred stocks jumped 3.8 percent while Banco do Brasil’s common shares rose 4.3 percent.
“It’s the same move we’ve seen in March and in the beginning of April, with a jump in stocks that are more exposed to the government,” said Joao Pedro Brugger, an analyst with Leme Investimentos in Florianopolis, Brazil.
Brazilian markets have started rallying in March when the first opinion polls showed Rousseff’s approval ratings dropping. Brazilians have mostly (Reporting by Walter Brandimarte, Priscila Jordao and Bruno Federowski; Editing by Bernard Orr)