EMERGING MARKETS-Brazil stock market gains on bargain-hunting

* Bovespa index rises first day in four on Monday

* Bradesco gains after fourth-quarter net up 46 pct

* IPOs seen booming through April, BM&FBovespa CEO says

By Guillermo Parra-Bernal

SAO PAULO, Jan 31 (Reuters) - Brazilian stocks gained for the first day in four on Monday after investors took advantage of recent declines to buy the most-widely traded stocks.

The Bovespa .BVSP, Brazil's main stock index, gained 0.6 percent to 67,081.88, led by gains in nonvoting shares of state-controlled oil company Petrobras (PETR4.SA) and steelmaker Gerdau (GGBR4.SA).

Investors in Brazil's stock markets played down the continuation of protests in Egypt, where anti-government demonstrations are seeking to oust the three-decade regime of Hosni Mubarak. With no major indicators expected, traders said cheap valuations as well as expectations of strong corporate earnings reports spurred gains in the Bovespa.

"Those shares that suffered most during last week's rout are now the ones poised to stage the strongest recovery in their prices," said Gustavo Brunetto, a stock trader with Solidus Corretora in Porto Alegre, Brazil.

"Valuations, which went down a lot last week, and the reports of local companies should determine the direction of the market, instead of the news flow last week," he added.

The MSCI Latin American stocks index .MILA00000PUS rose 0.5 percent to 4,411.87, the first increase in five sessions.

Petrobras gained for the second day in three, after international oil prices rose. The company has also been the subject of upgrades in analyst recommendations recently after a spree of new finds and its success in raising $6 billion from global bond investors.

Petrobras' most widely traded class of stock rose 0.4 percent to 26.77 reais. Rival oil producer OGX Petroleo (OGXP3.SA) also climbed, up 0.7 percent to 18.08 reais.

Both stocks "were hard-hit by last week's market rout," Brunetto said.

Shares of Banco Bradesco (BBDC4.SA), Brazil's second biggest non-government bank, was up 0.2 percent after the bank reported a surge of 46 percent in recurring net income. [ID:nLDE70U114]

Steelmaker Usiminas (USIM5.SA), the biggest maker of flat steel products in Brazil, rose for the first session in six, adding 1 percent to 18.89 reais. Rival CSN said last week that it increased its stake in Usiminas and sees the investment as a "strategic move."

BM&FBovespa (BVMF3.SA), the operator of the Sao Paulo stock exchange, rose 0.9 percent to 11.98 reais after Chief Executive Edemir Pinto said he expects one or two weekly share listings on average through April. [ID:nN31258885]

Nonvoting shares of Banco PanAmericano (BPNM4.SA), the lender that in November received an emergency rescue loan, soared 8 percent to 4.73 reais on speculation controlling shareholder Silvio Santos will sell his stake to securities firm BTG Pactual [BTG.UL]

A source with direct knowledge of the situation told Reuters on Monday that both parties are making progress in a deal and that a stalemate that was reached during the weekend over price could be sorted out "in a day or two." [ID:nN31200281]

(Reporting by Guillermo Parra-Bernal)