Shares of several U.S.-traded companies based in Brazil hit fresh 52-week highs on Monday, led by Gerdau SA after the Inter-American Development Bank approved a $200 million loan for a subsidiary of the steel company.
The Bank of New York Brazil ADR Index rose 2.79 points to 632.14.
On Friday, the IDB said it approved the loan to Gerdau Acominas SA to install equipment to produce slab for flat steel production at its Ouro Branco mill in the Brazilian state of Minas Gerais.
The loan will also go to installing a vacuum degassing unit for improved steel quality at the mill and other equipment, at a total cost of $370 million, the bank said in a statement.
American Depositary Receipts of Gerdau climbed $1.04, OR 2.1 percent, to $49.91 on Monday. Shares hit a fresh 52-week high of $50.65 earlier in the session. ADRs are securities designed to allow overseas companies to trade on U.S. markets.
Other Brazilian ADRs traded higher as well. Oil producer Petroleo Brasileiro SA gained $1.35 to $71.99 as the price of oil hovered around $126 on the New York Mercantile Exchange. Shares also hit a fresh 52-week high of $72.91 earlier in the session.
Pulp and paper producer Aracruz Celulose SA rose $1.32 to $89.36 after pulling back from an annual high of $91.63.
Broader ADR indexes were mixed. The Bank of New York Latin America ADR Index gained 3.17 points to 505.27.
The Bank of New York Composite ADR Index gave up 0.08 points to 188.77.
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