Brazil Markets Rise as Court Halts Oil Export Tax
Key Facts
- The Ibovespa, Brazil’s main stock index, rose 0.31% to 175,135 points on Thursday, a seventh straight gain.
- Petrobras preferred shares jumped 3.0% after a federal judge suspended collection of a 12% tax on crude-oil exports.
- On the same day, the government’s foreign-trade chamber Camex voted to extend that tax until November setting up a legal tug-of-war over the levy.
- The dollar closed at R$5.162 (US$1), up 0.2% with the central bank’s PTAX reference rate at 5.1642, so the real slipped only slightly.
- Steelmaker Gerdau gained 4.8% and led metals higher, while outside the index Braskem soared 19.9% and Oncoclínicas crashed 28.1%.
Today’s Focus
Brazil’s stock market rose for a seventh straight session on Thursday. The Ibovespa closed 0.31% higher at 175,135 points, powered by a 3% jump in state-controlled oil giant Petrobras.
The trigger came from court. A federal judge in Brasília suspended collection of a 12% tax on crude-oil exports, hours after the government’s trade chamber voted to keep that same tax running until November.
The real, Brazil’s currency, barely moved, with the dollar closing at R$5.162 (US$1). Wall Street lent support too, as the S&P 500 rose 0.72% after strong results from chipmaker Nvidia.
What matters today. A court win for oil exporters gave Brazil’s market a fresh push, but with the government extending the tax to November, the fight over the levy is not over.
01 The session in one read
The Ibovespa, Brazil’s main stock index, closed at 175,135 points on Thursday, up 0.31%. It traded between 173,661 and 175,558 points during the session.
Petrobras did the heavy lifting. Its preferred shares, the most traded on the B3 exchange, rose 3.02%, and its common shares gained 3.0%.
The spark was a court order. Judge Diego Câmara of the 17th Federal Court in Brasília told the government to stop collecting the 12% export tax on crude oil while the case is heard.
The currency told a quieter story. The dollar ended at R$5.162, up 0.2% on the day, while the central bank’s PTAX reference rate came in at 5.1642 per dollar.
The market cheered the injunction, but the levy’s story is not finished. On the same Thursday, Camex, the cabinet-level foreign-trade chamber, voted to extend the 12% tax until November.
The tax was first created by decree in March, lapsed in July when Congress let it expire, and was then reinstated by Camex. If the government wins on appeal, Petrobras’s relief rally could fade quickly.
The variable to watch is the next court decision, and whether Brasília looks for other ways to raise the same revenue.
02 The day’s numbers
| Measure | Level | Change | Read |
|---|---|---|---|
| Ibovespa | 175,135 | +0.31% | Seventh straight gain |
| Session range | 173,661 – 175,558 | — | Gains built in the afternoon |
| USD/BRL (spot dollar) | 5.162 | +0.2% | Real slightly weaker; PTAX at 5.1642 |
| Trading volume | R$23.1 billion | — | About US$4.5 billion changed hands |
| August so far | −1.61% | — | Recovering from an early-month slide |
The board shows a market climbing a wall of worry. Seven gains in a row have rebuilt most of what was lost in early August, though the index is still down 1.61% for the month.
Turnover of R$23.1 billion (about US$4.5 billion) shows this was a normal, busy session rather than a thin summer drift. Rio Times · Live Market Intelligence
Live Market IntelligenceBrazil — Live Market Board
Brazil — Live Market Board
Instrument Last Change YoY Prev. High Low Volume
IBOV
175,135.41
+0.31%
+21.85%
174,586.26
168,310
167,142
—
USD/BRL
5.16
+0.01%
-5.13%
5.16
5.18
5.14
—
SELIC
14.00%
—
—
—
—
—
PETR4
41.64
-0.05%
+35.19%
41.66
41.97
41.15
41,499,400
VALE3
72.97
+0.83%
+30.75%
72.37
73.54
72.66
17,658,000
ITUB4
38.60
-1.03%
+4.57%
39.00
39.34
38.39
29,487,800
BBDC4
16.85
+0.36%
+3.50%
16.79
16.90
16.67
19,416,900
BBAS3
19.37
+0.47%
+0.73%
19.28
19.44
19.16
11,069,200
B3SA3
14.26
-0.21%
+12.73%
14.29
14.47
14.11
33,037,800
ABEV3
14.89
-0.80%
+21.91%
15.01
15.07
14.81
16,453,100
WEGE3
47.59
+0.49%
+29.99%
47.36
48.08
47.36
3,364,600
PRIO3
59.14
-0.19%
+50.67%
59.25
59.81
58.74
3,325,600
SUZB3
41.33
+2.35%
-23.55%
40.38
41.48
40.35
3,914,900
RENT3
34.68
-0.09%
+0.84%
34.71
34.96
34.35
7,979,100
AZZA3
15.89
-2.63%
-53.76%
16.32
16.42
15.82
1,330,300
CSNA3
4.30
+0.47%
-42.65%
4.28
4.41
4.26
10,076,100
GGBR4
24.69
+2.19%
+51.38%
24.16
24.85
24.18
7,047,600
ENEV3
24.21
-1.38%
+70.49%
24.55
24.64
23.99
9,297,000
Live Company IntelligencePetroleo Brasileiro Petrobras SA ADR — the full investor dossier
Wall Street view
Valuation & profitability
Price & risk
$10.6552-wk high
$21.44
Revenue trend · 6y
Ownership
Dividend
03 Why it moved — a court win for oil exporters
Two headline events collided on Thursday. First, Camex approved keeping the 12% crude-export tax in place until November. Hours later, a federal judge suspended its collection.
Investors bet the court has the final word for now. Petrobras, Brazil’s dominant crude exporter, is the clearest winner, and its shares carry the heaviest weight in the index.
The company had more good news of its own. It launched two new production vessels for Búzios, its largest oil field, announced the early buyback of about US$1 billion in bonds due 2028, and expanded a credit line for petrochemical maker Braskem to R$2.35 billion (about US$455 million).
Foreign money is also drifting back. Official exchange data show a third straight day of net foreign buying, with R$1.37 billion coming in on Tuesday alone, though August still shows a net outflow of R$20 billion.
04 The day’s movers
| Driver | Level / Move | Change | Note |
|---|---|---|---|
| Petrobras PN (PETR4) | Index heavyweight | +3.02% | Tax ruling and company news |
| Totvs (TOTS3) | Top index gainer | +6.41% | Software maker backed by JPMorgan analysts |
| Gerdau PN (GGBR4) | Steelmaker | +4.76% | UBS raised its price target to R$31 |
| C&A (CEAB3) | Retailer | +3.69% | Plans 60–80 new stores between 2027 and 2030 |
| Banco do Brasil (BBAS3) | State bank | +2.31% | Bucked a weak day for banks |
| Vale (VALE3) | Iron-ore major | +0.84% | Firmed after a soft open |
| Itaú Unibanco PN (ITUB4) | Largest private bank | −0.89% | Banks mostly lower |
| BTG Pactual units (BPAC11) | Investment bank | −0.61% | Followed the sector down |
| Minerva (BEEF3) | Meatpacker | −3.17% | Gave back part of a strong run |
| Hypera (HYPE3) | Drugmaker | −3.45% | Snapped four days of gains |
| Braskem PNA (BRKM5) | No longer in the index | +19.89% | Surged amid its debt restructuring |
| Oncoclínicas (ONCO3) | No longer in the index | −28.13% | Slid on a regulator ruling in a takeover-offer dispute |
Inside the index, the winners were a mixed bag: a software firm, a steelmaker, a fashion chain and a state bank. The heavy banks leaned the other way, with Itaú, Bradesco, Santander Brasil and BTG Pactual all lower.
The wildest moves happened outside the index. Braskem, dropped from the Ibovespa after filing for out-of-court debt restructuring, rocketed 19.9%, while cancer-care group Oncoclínicas plunged 28.1% after a securities-regulator decision kept a mandatory buyout offer on the table.
05 The regional scoreboard
| Index | Country | Change |
|---|---|---|
| Ibovespa | Brazil | +0.31% |
| IPSA | Chile | +0.9% |
| IPC | Mexico | −0.55% |
| Merval | Argentina | −0.79% |
Latin America split on Thursday. Chile’s IPSA led with a 0.9% rise, bouncing back after two down sessions.
Argentina’s Merval fell 0.79%, the region’s weakest showing, while Mexico’s IPC lost 0.55% and slipped back below the 66,000-point mark.
06 The technical picture
Seven straight gains have repaired the chart. Analysts at Itaú BBA say the index has broken out of its August downtrend, and they see the next ceiling at 180,700 points.
On the downside, they mark first support at 164,800 points. The index remains 1.61% lower in August, so the month is not yet saved.
For now, the pattern is a steady climb in small steps. A close above 180,700 would confirm the recovery has legs.
07 What to watch
- The appeal: the government can challenge the injunction, and its Camex extension keeps the 12% oil-export tax alive until November on paper.
- The Fed’s Jackson Hole speech: Federal Reserve chief Kevin Warsh speaks on Friday, and his words could move the dollar and emerging-market currencies.
- Foreign flows: three straight days of net foreign buying are encouraging, but August still shows R$20 billion heading out.
- Petrobras follow-through: whether the oil giant holds its 3% gain will say a lot about how durable the tax reprieve looks to big investors.
Background: Ibovespa Slides for a 9th Straight Session as Citi Drops Brazil’s Real on a Likely Lula Win.
Ibovespa — More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What is the Ibovespa?
It is the main stock-market index of Brazil’s B3 exchange in São Paulo, tracking the largest and most-traded companies in the country.
Why did Petrobras shares rise 3% on August 27?
A federal judge suspended collection of a 12% tax on crude-oil exports, and the company also launched two new oil-platform vessels and announced an early buyback of about US$1 billion in bonds.
What is the real worth right now?
It is Brazil’s currency, official code BRL. On Thursday the dollar closed at R$5.162, with the central bank’s PTAX reference rate at 5.1642 per dollar.
Ibovespa — Market data: RT; exchange figures from B3; session reporting by Reuters; PTAX from Brazil’s Central Bank
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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