Ibovespa rises, nears record high but then declines; Azul leads climbs

RIO DE JANEIRO, BRAZIL – Ibovespa rose on Tuesday morning, May 25, drawing even closer to its historical highs, favored by the positive mood on Wall Street, with Azul leading the climbs after stating that it is looking into consolidation opportunities.

At 11:12 AM, Ibovespa was up 0.0% at 124,068.09 points. The financial volume was R$4 billion. However, by 4PM, the index had fallen 1.01% and was at 122,773.73 points.

The previous day, Ibovespa closed up 1.17% at 124,031.62 points, nearing its record closing high of 125,076.63 points on January 8. The intraday record is 125,323.53 points.

According to a graphic analysis by Safra Corretora’s team, Ibovespa is in an uptrend in the short term and broke through its resistance at 123,500 points.

“Above this, it may reach its next resistance at 125,300 points. On the bearish side, the index has formed a bottom at 121,800 points. If it loses this one, it could go down to its next support at 121,600 points.”

Highlights

Azul (AZUL4) was up 4.54%. The company hired consultants to study consolidation opportunities in the industry and announced termination of codeshare agreement with LATAM Airlines Brazil. Rival Gol (GOLL4) was up 3.6%.

Weg (WEGE3) rose 2.85%, seeking recovery for the second straight trading session, after accumulating a 9.4% decline in May through last Friday. From the January highs, it still records a loss of approximately 30%.

Petrobras (PETR4) appreciated 0.38%, despite the weakness of oil prices abroad, although Brent crude has pulled away from the lows.

EMBRAER (EMBR3) advanced 3.34%, recovering pre-pandemic February 2020 levels, before the collapse of the deal with Boeing. In the year, shares accumulated a 99% high, partly driven by expectations of migration in the global airline market to smaller aircraft, as well as a potential partnership signaled by the company and the reopening of economies.

Vale (VALE3) was down 0.56% with new weakness in iron ore futures in China.

BB Seguridade (BBSE3) ON lost 0.81%, continuing the negative adjustment of the day before, after accumulating a rise of almost 6% since the start of the month.

Energisa (ENGI11) dropped 0.68%, in a negative session for other electricity companies’ shares. The sector’s index at B3 fell 0.1%. Eletrobras (ELET3) lost 0.73%, after last week renewing historical highs in the wake of expectations related to its privatization.

Itaú (ITUB4) fell 0.61% and Bradesco (BBDC4) was down 0.39%, reducing Ibovespa’s momentum.