Brazil’s São Paulo stock exchange recovers ground with a 2.3% gain
RIO DE JANEIRO, BRAZIL – The São Paulo stock exchange recovered some of the ground lost last week, when it plummeted 7.3% due to doubts about the Brazilian government’s fiscal policy, by gaining 2.28% on Monday, boosted by the state-owned oil company Petrobras.
The Ibovespa, the benchmark of the trading floor, closed at 108,714 points in a positive session for Petrobras and other flagships of the São Paulo corridor, such as the mining giant Vale and the bank Itaú.
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The US dollar depreciated by 1.3% in the currency market and ended the day at 5.55 reais for purchase and sale at the Brazilian commercial exchange rate.
At the beginning of the week, financial operators put aside the crisis of confidence triggered by the decision of Jair Bolsonaro’s government to relax the rules of fiscal responsibility to increase social spending in 2022, the year in which he will seek re-election.
These misgivings caused the stock market to plunge and the dollar to appreciate sharply, forcing President Bolsonaro and the Minister of Economy, Paulo Guedes, to appear twice publicly in recent days to guarantee that his fiscal maneuvers are “technically correct”.
However, this Monday, calm prevailed in the Brazilian market, adding 2,418 units to its accumulated score.
The volume traded exceeded 32 billion reais (5.765 billion dollars), in a total of 4,905,548 financial operations, according to preliminary results at the end of the session.
Leading the gains were Petrobras preferred and common shares, which soared 6.8% and 6.1%, respectively, after Bolsonaro insisted that the oil company was “on the radar” of his privatization program. However, he acknowledged that it is a complicated operation.
The shares of the road operator Ecorodovias (6.1%), the fuel distributor Vibra (5.1%), and the travel agency CVC Brasil (6.1%), among others, also advanced.
On the other side of the coin, a bad day for the meat sector falls for BRF (-1.3%) and Marfrig (-1.2%), although the most significant losses were recorded by the Suzano paper mill (-2.5%).
The most traded stocks were Petrobras preferred and ordinary shares and those of Itaú-Unibanco (1.9%) and Vale (1.2%).
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+2.97%
177,866
+2.97%
66,496
+0.59%
11,057
+0.28%
3,280,224
+2.43%
2,307.67
+0.65%
56,194.27
+1.29%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 177,866 | +2.97% | +30.07% | 172,742 | 177,866 | 172,761 | — |
| USD/BRL | 5.11 | -0.17% | -8.50% | 5.12 | 5.13 | 5.10 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| PETR4 | 39.65 | +1.12% | +22.98% | 39.21 | 39.97 | 39.34 | 27,213,400 |
| VALE3 | 74.18 | +1.41% | +34.19% | 73.15 | 74.66 | 73.12 | 22,118,800 |
| ITUB4 | 44.30 | +4.02% | +29.44% | 42.59 | 44.34 | 43.23 | 28,691,300 |
| BBDC4 | 18.86 | +4.78% | +16.85% | 18.00 | 18.87 | 18.32 | 47,714,200 |
| BBAS3 | 20.58 | +2.90% | -2.97% | 20.00 | 20.67 | 20.25 | 24,323,000 |
| B3SA3 | 15.42 | +4.26% | +9.44% | 14.79 | 15.53 | 15.19 | 41,437,800 |
| ABEV3 | 15.82 | +0.64% | +19.58% | 15.72 | 15.99 | 15.72 | 34,764,700 |
| WEGE3 | 46.51 | +1.68% | +16.57% | 45.74 | 46.80 | 46.11 | 7,145,200 |
| PRIO3 | 55.45 | -0.29% | +32.66% | 55.61 | 56.29 | 55.04 | 6,818,400 |
| SUZB3 | 41.55 | +1.27% | -16.65% | 41.03 | 41.87 | 41.20 | 8,080,900 |
| RENT3 | 41.10 | +4.31% | +7.45% | 39.40 | 41.32 | 40.31 | 8,338,600 |
| AZZA3 | 19.10 | +3.47% | -47.66% | 18.46 | 19.30 | 18.81 | 1,703,700 |
| CSNA3 | 5.18 | +7.92% | -37.82% | 4.80 | 5.20 | 4.95 | 14,591,200 |
| GGBR4 | 23.01 | +2.36% | +36.32% | 22.48 | 23.10 | 22.58 | 10,449,600 |
| ENEV3 | 27.55 | +5.15% | +107.61% | 26.20 | 27.55 | 26.61 | 16,185,800 |
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