Bank of America (NYSE:BaC) Says Least Regulated Brazilian Utilities will Outperform Peers

Responding to comments from Bank of America (NYSE:BaC) that utilities in Brazil which are less regulated will outperform their peers because of "better pricing trends," Cia. Energetica de Minas Gerais responded by leading the Brazilian utility sector in gains.

Other stocks in the sector also advanced, with Tractebel Energia SA rising to a record close for them, increasing 2.3 percent to 26.95 reais.

State-run Cemig, rose by 2.5 percent to 29.37 reais, and was up by 3.6 percent earlier in trading.

This was important because the Bovespa index plummeted as the stocks within it got hammered because of the news Australian gas explorer Karoon Gas Australia Ltd. decided to cancel a share sale in the country, and China has decided to further tackle their inflation threat. China is the largest trade partner of Brazil.

The report on the utility sector seems an attempt to offset the rest of the bad financial news in the country.