Brazilian State companies lose more than US$5.6 billion in market value after first measures of Lula’s government
On the first day of the Luiz Inácio Lula da Silva (PT, progressive-globalist) government and after the ex-governor paralyzed the privatizations, the shares of the five leading Brazilian state-owned companies suffered a substantial setback and lost R$31.8 (US$5.6) billion in market value in the first trading session of the year.
As calculated by the investment platform TradeMap, Petrobras, Banco do Brasil, Eletrobras, Caixa Seguridade, and BB Seguridade suffered significant devaluation.
In the last trading session of 2022, the total market value of the state-owned companies was R$634.6 billion and closed the day with R$602.8 billion.
Petrobras, which accounts for more than half of this value, lost R$22.8 billion and went from R$345.8 billion to R$323.2 billion – with a devaluation of 6.45%.
In the wake of the oil company, Banco do Brasil also lost R$4.3 billion in market value, with a drop in its quotations of 4.23% on the day.
Yesterday, the Ibovespa depreciated by 3%; in contrast, the dollar rose by 1.5%.
The indicators sank after President Lula da Silva criticized the spending cap and announced that a series of privatizations would be revoked.
Published in the Diário Oficial da União (DOU) on Monday,
- the Brazilian Post and Telegraph Company –
- ECT; the Brazilian Communication Company –
- EBC, the Social Security Technology and Information Company –
- Dataprev; Nuclebrás Equipamentos Pesados S. A. –
- Nuclep; the Serviço Federal de Processamento de Dados –
- Serpro; the warehouses and properties owned by the Companhia Nacional de Abastecimento –
- Conab; Petróleo Brasileiro S.A. –
- Petrobras; and the Empresa Brasileira de Administração de Petróleo e Gás Natural S.A. –
- Pré-Sal Petróleo S.A. –
- PPSA
will no longer have their privatization processes continued by the new government.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+3.05%
185,205.09
+3.05%
64,833.08
+0.49%
11,315.26
-1.14%
3,106,216
+1.86%
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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