Domestic Stocks Soar Despite Slow Growth, High Rates in Brazil

Stocks that depend on Brazil’s economy are staging a comeback for the first time in years, as expectations of a monetary easing cycle and a potential change in government next year overshadow borrowing costs at a two-decade high and slowing growth.

Eight of the top 10 performers on the benchmark Ibovespa index are companies that depend on the domestic market. Stocks from education services firm Cogna Educação SA and retailer C&A Modas SA are the biggest winners so far this year, surging 198% and 118%, respectively.