Brazil stocks rise on VisaNet debut, commods rally

(Updates to close)

By Luciana Lopez

SAO PAULO, June 29 (Reuters) - Brazilian stocks closed higher on Monday as investor interest in new shares of VisaNet helped boost the overall market and a rally in energy prices sparked buying in heavyweight commodity stocks.

VisaNet's VNET3.SA $4.3 billion initial public offering on Thursday was the country's largest ever and the world's biggest so far this year.

VisaNet, the Brazilian affiliate of credit card network Visa, jumped as much as 14.7 percent within the first 15 minutes of trading, before ending 11.8 percent higher at 16.77 reais.

"The Bovespa is tending higher mainly because of VisaNet," said Eduardo Cortez, an analyst with Gradual Investimentos, in a phone interview. "There's always a tendency for other big companies to accompany those movements."

Market rival Redecard (RDCD3.SA) fell 4.32 percent to 31 reais. Elsewhere in the financial sector, banking stocks headed higher.

Bradesco (BBDC4.SA) gained 1.04 percent to 29.20 reais, Banco do Brasil (BBAS3.SA) put on 0.57 percent to 21.32 reais and Itau Unibanco (ITUB4.SA) jumped 1.97 percent to 31.52 reais.

The benchmark Bovespa index .BVSP rose for the second session in three, climbing 1.27 percent to close at 52,137.58 points.

A rally of more than 3 percent in oil prices also helped commodity shares close higher. Both crude oil and copper prices rose after closing lower on Friday.

"It's better to look at the increase in commodities prices as the trigger for the increase in the exchange," said Alexandre Lintz, senior strategist at BNP Paribas.

State-controlled energy company Petrobras (PETR4.SA) rose 2.48 percent to 33.05 reais, and mining giant Vale (VALE5.SA) gained 0.66 percent to 30.30 reais. Those two stocks have the biggest weighting in the 65-share index.

The stock market was also buoyed after Brazil's government announced on Monday that it would renew tax breaks for the automobile, construction and home appliance industries as well as cut industrial taxes for 70 capital goods, including machinery and power generators.

A separate tax exemption on wheat and bread was also renewed.

Grocery giant Pao de Acucar PCAR4.SA rose 0.91 percent to 37.53 reais, after having fallen most of the day. Homebuilder Cyrela (CYRE3.SA) jumped 4.28 percent to 14.85 reais and Gafisa SA (GFSA3.SA) rose 3.57 percent to 16.25 reais.

REAL FALLS

Brazil's currency, the real (BRBY), fell against the dollar, losing 1.2 percent to 1.964 reais to the dollar.

Yields on Brazilian interest rate futures contracts <0#DIJ:> rose slightly. The yield on the January 2011 contract DIJF1, the most highly-traded, rose to 10.06 percent from an opening of 9.93 percent.

Minutes from the last meeting of the Brazilian central bank's monetary committee released earlier in June hinted at more cuts of the benchmark interest rate, the Selic, on expectations of low inflationary pressure. Policymakers have already cut the Selic to a record low 9.25 percent in June.

Monday data on Brazil's broadest inflation measure, the IGP-M index, showed a greater-than-expected fall, dropping 0.1 percent in June after slumping 0.07 percent in May.