Brazil stocks rise on retail, construction gains

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SAO PAULO, Brazil, April 8 (Reuters) - Brazilian stocks rose on Wednesday, as gains in retailers and construction firms offset a slump in banks on news the government had replaced the head of state-run Banco do Brasil.

Sao Paulo's main stock index .BVSP edged up 0.82 percent to 44,181.98 points, helped by a Wall Street rise.

The Brazilian national currency, the real (BRBY) firmed 0.63 percent to trade at 2.20 per dollar.

Net outflows of U.S. dollars from Brazil totaled $797 million in March after a net inflow of $841 million in the previous month, central bank data showed.

Brazil's government replaced the chief executive of Banco do Brasil on Wednesday, underscoring President Luiz Inacio Lula da Silva's determination to push lending rates lower to avert a major slump in Latin America's largest economy.

The government's announcement that Antonio Francisco de Lima Neto had asked to step down followed months of pressure on the state-owned bank to more fully pass on recent interest rate cuts to consumers by reducing its banking spreads. For details, see [ID:nN08200881]

The government's apparently tough stance on interest rates buoyed retailers such as Lojas Americanas and Lojas Renner and construction companies on hopes of lower interest rates.

Lojas Americanas (LAME4.SA) jumped 10 percent to 8.10 reais and Lojas Renner (LREN3.SA) gained 5.1 percent to 17.13 reais.

Construction companies, underpinned by a $15 billion housing plan last month, also gained. Gafisa (GFSA3.SA) surged nearly 7 percent to 14.86 reais and Rossi Residential (RSID3.SA) gained 7.4 percent to 4.93 reais.

But financial stocks were limiting the upside.

Banco do Brasil (BBAS3.SA) tumbled 8.15 percent to 17.35 reais. Itau (ITAU4.SA) fell 0.14 percent to 28.30 reais, and Nossa Caixa (BNCA3.SA) slipped 0.35 percent to 71 reais.

Interest rate futures <0#DIJ:> fell on expectations the central bank will continue to cut interest rates after analysts in the latest central bank revised down their forecasts for 2009 growth to a contraction of 0.2 percent.