Brazil’s Sabesp Tops Bovespa Index on Tariff Outlook


01/07/2012 09:10 AST  BusinessWeek

Cia. de Saneamento Basico do Estado de Sao Paulo is the best performing stock on the Bovespa in the first half on speculation the Brazilian utility will win approval to raise rates more than in previous years.

Sabesp, as the world’s largest water utility by market value is known, has climbed 48 percent since the start of the year, the biggest gainer on the Bovespa index, which dropped 4.2 percent in the period. Brazil’s two-biggest utilities by market value, Cia. Energetica de Minas Gerais (CIG) and CPFL Energia SA (CPFE3), posted a 41 percent gain and a 2.4 percent drop, respectively.

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