Ibovespa falls 0.74% to its lowest level since June 5th; during the week, it drops 2.25% By Estadão Conteúdo

2023-10-21 11:10:31

© Reuters. Ibovespa falls 0.74% to its lowest level since June 5th; during the week, it drops 2.25%

Even with the negative performance of B3’s (BVMF:) flagships, such as Vale and Petrobras (BVMF:), it moderated losses throughout the afternoon and managed to retain the 113 thousand points line at the close of this last session of the week, in interval in which this Friday, the 20th, saw the fourth daily retraction, which resulted in a drop of 2.25% in the accumulated result since Monday – in the previous week, it had advanced 1.39%.

This Friday, the B3 index fluctuated from 112,533.33 to 114,089.58 points, closing down 0.74%, at 113,155.28 points, at the lowest closing level since June 5, then close to 112. 7 thousand points.

Financial turnover was R$24.1 billion, reinforced by the expiration of stock options this weekend.

During the month, the Ibovespa dropped 2.93%, limiting the year’s gain to 3.12%.

In New York, the main stock indices showed losses greater than those seen here in the session, with the down of 0.86%, the 1.26% and the 1.53% at the close of the day. day – in the week, they fell 1.61% (Dow Jones), 2.39% (S&P 500) and 3.16% (Nasdaq)

At B3, external caution once again set the tone for business this Friday, favoring, among risk assets, only part of the day, with trading above US$93 per barrel at the highs of the session – at the end, the commodity also lost strength and ended lower, following the announcement by the North American government that it will carry out new purchases to replenish strategic stocks.

Here, Petrobras did not follow the movement in commodity prices even when they rose, trimming the gains accumulated by the company’s shares during the week to 3.79% (ON) and 4.33% (PN). On Thursday night, after the stock exchange closed, the state-owned company announced an adjustment in the domestic prices of diesel (increase) and gasoline (reduction) at refineries, effective from this Saturday, 21st.

At the close of this Friday, Petrobras ON (BVMF:) fell 1.09% and PN, 1.28%, on a bad day for Vale ON (BVMF:), down 2.70%, with the fall of 3.17% in futures contracts in Dalian, China, amid the resumption of fears about the real estate sector in the Asian country. The big banks also did poorly in the session, with Bradesco (BVMF:) ahead (ON -1.27%, PN -1.87%, both at the day’s lows at closing). At the losing end of the Ibovespa, Magazine Luiza (BVMF:) (-4.35%), Azul (BVMF:) (-3.51%) and CSN (BVMF:) (-3.29%). On the opposite side, Grupo Casas Bahia (+4.00%), BRF (BVMF:) (+3.85%) and Natura (BVMF:) (+2.96%).

“The Stock Exchange was pulled downwards again today due to the global risk aversion scenario, with the perception that Israel’s land invasion of the Gaza Strip is likely to occur this weekend – which reinforces the movement of searching for assets considered safer”, says André Luiz Rocha, variable income operator at Manchester Investimentos, highlighting this week the breaking of the 5% threshold in the yields on North American Treasury bonds, given the market’s doubts about the level the end of the US Central Bank’s reference interest rates in the current high cycle.

Outside the United States, “concern about the real estate market continues in China, showing that the government’s signs of encouragement, in the short term, have not had much effect, thus putting pressure on iron ore and companies in the sector listed on our stock exchange “, adds the operator.

In this difficult external scenario, “the fall of the Ibovespa was largely conditioned today by Vale and shares in the metal sector, in reaction to what is expected from Chinese demand”, observes Virgilio Lage, specialist at Valor Investimentos, also highlighting the adjustment in Petrobras, with the company’s shares “performing on top of the week’s accumulated profits”.

Furthermore, the performance signaled this Friday by IBC-Br for economic activity, in the most recent reading of the index – considered antecedent data for GDP -, contributed to additional caution in relation to an already damaged segment of the Stock Exchange, the retail segment, as well as remarks by the Minister of Finance, Fernando Haddad, on the performance of the economy in this third quarter, which is slowing down, adds the analyst.

“This week, data released on the retail and services sectors in Brazil showed a slowdown in August. Consumption of goods and services by families has been cooling down over the last few months”, says Gustavo Sung, chief economist at Suno Research. “And the August IBC-Br, released this morning, worse than expected, brought a drop of 0.77% compared to July, which reinforces the perception of a slowdown in the Brazilian economy. The August data, taken together, suggests lower demand from economic agents and possible accommodation of activity in this third quarter.”

In this domestic and external environment that is less favorable to risk appetite, market pessimism about the performance of shares in the very short term has grown strongly in this Friday’s Broadcast Bolsa Thermometer. Among the survey participants, 42.86% believe that next week will be a loss for the Ibovespa and for another 42.86%, the perception is bullish. Those who expect stability are 14.29%. In last week’s survey, expectations for the index were divided between high (60.00%) and neutral variation (40.00%), with no response predicting a fall.