Brazilian stock market falls sharply and dollar rises on fears that PT party will change law on state-owned enterprises
The Ibovespa, the main index of the B3 (São Paulo Stock Exchange), fell 3.39% this Monday alone (Dec. 12) amid rumors of changes or repeal of the Law of State Owned Enterprises.
At 12.30 pm, it was down 2.62%, at 108,830 points. The commercial dollar, in turn, rose 1.78%, at R$ 5.34.
The index reached 103,877 points at the minimum of the day.
Ibovespa is trading against the leading markets in the United States. This is the lowest level since August 2022. The Dow Jones was up 0.52%. The S&P 500 advanced 0.29%.
The Ibovespa closed the previous week at 107,519 points, while the dollar closed at R$5.25.
The financial market reacted to rumors that the elected government of Luiz Inácio Lula da Silva (PT, progressive-globalist) will make changes to the State Law, sanctioned in 2016 during the Michel Temer administration.
A report by consulting firm Eurasia reminded everyone that the PT intends to change the State Law.
The rule was created in the post-Lava Jato operation. The legislation tries to shield companies from political interference.
It prevents people who contested elections in the previous 36 months from being appointed to the companies’ executive boards.
It also requires the nomination of a technical person with experience in the oil market to head Petrobras, for example.
The president-elect intends to nominate Senator Jean-Paul Prates (PT-RN) or the coordinator of the transition government Aloizio Mercadante to the presidency of Petrobras.
The preferred shares of the state-owned company dropped more than 5% on Monday (Dec. 12). Banco do Brasil’s shares fell 3.89% at 12:30 pm.
Federal deputy and president of the PT, Gleisi Hoffmann, has already publicly defended changes in the State Law in June 2022.
“We have agreed to change the State Law. If Deputy Lira wants to bring in the Statute Law, we agree,” she said on the House floor on June 22, 2022.
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
-0.88%
185,566.32
-0.88%
63,924.77
-0.28%
11,290.46
+0.62%
3,088,970
-0.32%
2,597.12
+0.29%
59,184.75
-0.78%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,566.32 | -0.88% | +21.85% | 187,206.89 | 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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