NEW YORK (TheStreet) -- Shares of Petrobras (PBR) rose 7.44% to $17.77 in afternoon trading Tuesday amid speculation that a voter poll would show decreased support for Brazilian president Dilma Rousseff in October's election.
Petrobras is dealing with an investigation into allegations that the Brazilian state-owned energy company had bribed government officials. Sao Paulo-based Veja Magazine reported last week that several politicians, including some in Brazilian President Dilma Rousseff's Worker's Party, received bribes linked to Petrobras' contracts.
The speculation that a new government would come in to support growth and decrease intervention led the Ibovespa higher in Tuesday trading.
"Investors are watching election polls very closely, and people are betting that Dilma's support is losing momentum," Joao Pedro Brugger, who helps oversee 520 million reais as a portfolio manager at Leme Investimentos, told Bloomberg by phone from Brazil.
More than 35.4 million shares had changed hands as of 1:16 p.m., compared to the average volume of 25,220,400.
Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."