São Paulo stock exchange index gains almost 1% to reach all-time high (May 28)

RIO DE JANEIRO, BRAZIL – The São Paulo stock exchange index rose this Friday by 0.96% and reached a new historical maximum by closing at 125,561 points, boosted by the shares of the state-owned oil company Petrobras and the good mood in the international scenario.

Ibovespa, the principal index on the trading floor, thus surpassed the mark hit on January 8, when it ended with 125,076 points, in the midst of the expectation of the beginning of the vaccination campaign against Covid-19, which would start nine days later.

In the week, the Brazilian market index registered a positive variation of 2.42%.

The US dollar depreciated today by 0.82% against the real and ended the day at R$5.21 for purchase and sale at the Brazilian commercial exchange rate. The greenback also recorded a weekly decline of 2.6% against the Brazilian currency.

The Ibovespa rise reflected the optimism of economic operators, given the possibility that the US Federal Reserve (Fed) will continue with an expansive monetary policy in the United States.

However, caution continues regarding inflationary pressures in several countries worldwide, including Brazil, which is still dealing with the health and economic effects of the Covid-19 pandemic, which has already killed close to 460,000 Brazilians.

All in all, the Sao Paulo stock exchange added 1,194 points to its score in this historic session in which a new record was set. The volume traded reached R$30.12 billion (US$5.78 billion), totaling 3,815,095 financial operations.

Among the biggest gains on Friday were Petrobras common and preferred shares, which rebounded 5.78% and 4.17%, respectively, due to the rise in oil prices. The shares of the electric motor manufacturer WEG (4.75%), the retail network Lojas Americanas (3.87%), and the department store Magazine Luiza (3.68%) also rose.

On the other side of the coin, it was a bad day for the aviation and electricity sectors, the latter worried about the risk of a severe water crisis in the coming months in the center-west and south of the country due to the lack of rainfall.

The preferred shares of Azul and Gol airlines lost 4.06% and 3.03%, respectively, while the shares of CPFL Energia (-1.46 %), EDP Energias do Brasil (-1.32 %) and Compañía Energética de Minas Gerais (Cemig, -0.36 %) also fell.

The most traded shares were the preferred and common shares of Petrobras and those of  mining giant Vale (0.54 %).