Brazil stocks in best month since 2002; real firms

SAO PAULO, April 30 (Reuters) - Brazil's currency firmed and stocks rose on Thursday, heading for their best monthly performance since October 2002 as investors flocked to real estate developers, retailers and banking shares.

The Bovespa index .BVSP of the Sao Paulo stock exchange rose 1.4 percent to 47,874.68 points. Energy company Petrobras (PETR4.SA) gained 0.5 percent to 29.88 reais, while mining giant Vale (VALE5.SA) was up 2.1 percent to 30.73 reais, leading the market higher.

For the month, the Bovespa index has risen 17 percent, the biggest gain since a 17.9 percent surge almost seven years ago.

"It's all about the overseas scenario and inflows," said Luiz Roberto Monteiro, investment adviser at the Souza Barros brokerage. "We are in a climate of euphoria that reminds me of the stock market at 74,000 points last year."

Real estate developers led the market rally in April, with Rossi Residencial more than doubling in price after the government announced a large, $15 billion housing plan last month. Gafisa and Cyrela, Brazil's two largest developers, jumped 70 percent and 58 percent, respectively, this month.

Rossi (RSID3.SA) was up 7.4 percent to 7.65 reais on Thursday, while Gafisa (GFSA3.SA) gained 1.2 percent to 19.84 reais and Cyrela (CYRE3.SA) climbed 1.7 percent to 14.54 reais.

Expectations that lower interest rates would stoke demand for consumer and corporate credit also pushed Brazilian banking shares higher, with Itau Unibanco and Bradesco each rising about 19 percent this month. Itau Unibanco ITAU4.SA was up 1.5 percent to 30.52 reais on Thursday, while Bradesco (BBDC4.SA) rose 1.6 percent to 27.54 reais.

Brazilian retailers also benefited from hopes that lower rates would stimulate consumer demand. Lojas Americanas (LAME4.SA) rose 2.4 percent to 9 reais, with gains this month totaling about 39 percent, while clothing retailer Lojas Renner (LREN3.SA) jumped 6.2 percent to 19.75 reais. Lojas Renner was up nearly 40 percent in April.

Brazil's currency, the real BRBY, firmed 0.23 percent to 2.166 per dollar and strengthened nearly 7 percent in April.

Interest rate futures <0#DIJ:> were mostly lower, one day after the central bank cut borrowing costs by 100 basis points to a record low of 10.25 percent and indicated further rate cuts ahead. (Reporting by Elzio Barreto and Alberto Alerigi Jr.; Editing by Padraic Cassidy)