Brazilian stock market closes at a strong high and has first positive week since March

RIO DE JANEIRO, BRAZIL – The Brazilian stock market, Ibovespa, closed this Friday, May 13, high, following the positive tone of the international market. With the result, the Ibovespa rose 1.70% in the week – its first positive weekly result since March.

Stock markets in Europe and the United States recovered part of the losses of the last trading sessions after Jerome Powell, president of the Federal Reserve (Fed, American central bank), reaffirmed the day before the intention not to raise the pace of the American interest rates.

The statement increased the appetite for risk, benefiting stock markets and hurting the dollar, which fell sharply against the real, giving back a good part of the week’s gains. In the week, the dollar fell 0.4%.

Technology stocks, the most affected by perspectives of a harder monetary tightening in the world’s largest economy, are the highlight of high on Friday. The Nasdaq index, which was down more than 6% in the week, has Wall Street’s best performance in the trading session.

• Nasdaq (USA): + 3.82%
• S&P 500 (USA): + 2.39%
• Dow Jones (usa): + 1.47%

STOCK MARKET HIGHLIGHTS

Securities from the technology sector are also among Ibovespa’s highest risers. Among the highlights are shares of Méliuz (CASH3) and Banco Inter units (BIDI11). In the case of Inter, the units jumped almost 7% after the company’s shareholders approved the corporate reorganization that foresees the company’s listing on Nasdaq. The company reports its first-quarter results next Monday, May 16, after the market close.

• Méliuz (CASH3): + 7.26%
• Banco Inter (BIDI11): + 6,87%

The biggest gains, however, came from Yduqs (YDUQ3). The education company’s shares soared 12% after the company increased its student base by 77% to 1.27 million in the quarter. Growth was driven by the digital education front, which increased by 130.4% to account for 75.6% of total students. Cogna, which reversed last quarter’s loss, is up just over 1%.

• Yduqs (YDUQ3): + 12.11%

The day was also bullish for BRF’s (BRFS3) shares, which rose more than 10%. According to analysts, the movement was not related to any news about the company.

“BRF is one of the stocks that fell the most throughout the year. Today, with a strong buying force in the index, some investors see an opportunity to acquire these shares,” said Raphael Chedid, equity specialist at EWZ Capital.

• BRF (BRFS3): + 10.33 %

Other stocks that had been suffering in the last few trading sessions, such as the airline and tourism sectors, also registered strong highs on Friday.

• Gol (GOLL4): + 11.79%
• Azul (AZUL4): + 10.65%
• CVC (CVCB3): + 9.75%

On the negative side of the Ibovespa, the main fall came from B3 (B3SA3), which yesterday was one of the highlights of the day. The reason is the fall in net income, which fell to R$1.2 billion (US$240 million) – a drop of 7.2% compared to the same period last year and 4% below the Bloomberg consensus.

B3 (B3SA3): – 3,61%

With information from Exame