Brazilian stocks rise 3% and value of companies increases by US$26 billion this week
Ibovespa, the main index of the B3 stock exchange in São Paulo, rose 3.16% this week. It closed at 118,155 points on Friday (Nov. 4). Listed companies recorded price gains of R$132.3 (US$26) billion.
The week following the results of the presidential elections was marked by optimism in the financial markets.
The positive performance of the leading indices in Europe and Asia also contributed to the appreciation of Brazilian stocks.
In the last trading session on Friday (Nov. 4), Ibovespa exceeded the 120 thousand-point mark but closed below 118,155 points.
The market value of companies increased from R$4.40 trillion last week (Oct. 28) to R$4.53 trillion on Friday (Nov. 4). In 2022, the increase is R$161.7 billion.
Vale has increased its market value the most: from R$306.4 billion to R$328.2 billion. It rose by R$21.8 billion this week.
The company’s shares rose 7.59% on Friday (Nov. 4) on expectations of a revival in the Chinese economy.
BTG Pactual (R$10.9 billion), Ambev (R$10.7 billion), Weg (R$9.8 billion), and B3 (R$8.3 billion) completed the list of the five companies that rose the most this week.
The increase in assets was not more significant because of Petrobras. The state-owned company, which accounts for 10.3% of B3’s total portfolio, devalued R$54.2 billion.
There are fears that under the new socialist president, Lula da Silva, the company will not be privatized as President Jair Bolsonaro intended.
Despite the decline this week, Petrobras is still the company with the highest market value on the B3, at R$394.5 billion.
Among the top 5 are Vale (R$328.2 billion), Itaú Unibanco (R$273.1 billion), Ambev (R$258.9 billion), and Bradesco (R$190.3 billion).
Investors have become less risk-averse. They tend to invest in assets with higher volatility but can also yield higher returns.
For this reason, emerging markets such as Brazil are seeing an influx of foreign money.
The market is discussing the possibility of a lower adjustment of interest rates in the United States at the next meeting of the Fed (Federal Reserve, the North American central bank).
The unemployment rate in the country was higher than investors expected in October, which could lead the U.S. monetary authority to reduce the pace of interest rate increases so as not to affect the labor market.
In addition, China may be willing to ease its Covid-19 policy by releasing the inflow of people to improve the performance of the economic activity.
Brazilian politics is also on investors’ radar. The financial market approves the appointment of future Vice President Geraldo Alckmin (PSB) as coordinator of the change of government.
He has a better relationship with the market than the PT, the party of President-elect Luiz Inácio Lula da Silva.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+3.05%
185,205.09
+3.05%
64,884.28
+0.57%
11,315.26
-1.14%
3,106,216
+0.00%
2,489.31
+0.77%
59,515.48
+0.34%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,205.09 | +3.05% | +21.85% | 179,722.48 | 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 |
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