2023-09-22 23:00:40
© Reuters. B3 Scholarship in São Paulo 07/06/2023 REUTERS/Amanda Perobelli
Por Andre Romani
SÃO PAULO (Reuters) – The index closed close to stability this Friday, in a movement towards some accommodation in the index after a drop of more than 2% the day before due to tougher prospects for the rate in the United States, which led the index recording its worst week since March.
Vale and Petrobras were the biggest drivers of the index, while B3 and Weg (BVMF:) weighed negatively.
The Brazilian stock exchange’s reference stock index, Ibovespa, closed with a negative variation of 0.12%, at 116,008.64 points. The financial volume of the session totaled 17.8 billion reais.
During the week, the index fell 2.32%, the biggest since the week ending March 24th.
The warmest Friday in the market came after Ibovespa followed global risk aversion on Thursday, a day after the Federal Reserve signaled a restrictive monetary policy for longer in the USA, while in Brazil, the Central Bank cooled more optimistic expectations of an eventual acceleration in the pace of Selic cuts ahead.
“When you have this big downward movement in one day, the tendency is to show some accommodation the next day”, said the chief economist at Banco ABC (BVMF:), Daniel Xavier. “In both cases there were more ‘hawkish’, more conservative outcomes, said Xavier.
On Wall Street, the three main stock indices closed slightly in the red this Friday, falling 0.23%, also recording the worst week since March.
Investors were still paying close attention to the Brazilian fiscal scene, given uncertainties about the government’s ability to meet the zero deficit target in 2024.
“The market still doesn’t fully buy into the country’s fiscal trajectory for both 2023 and beyond. I think that has a bearing,” said Ilan Arbetman, analyst at Ativa Investimentos.
Highlights
– VALE ON (BVMF:) rose 0.74%, to 68 reais. Futures rose on Friday, supported by China’s economic support policies and after Rio Tinto (LON:) halted work at a Pilbara mine following an incident. In Singapore, the commodity reference contract once again surpassed the level of 120 dollars per ton.
– PETROBRAS PN (BVMF:) advanced 0.8%, to 34.03 reais. Abroad, prices closed practically stable, after rising earlier.
– ITAÚ UNIBANCO PN (BVMF:) had a negative change of 0.26%, to 26.92 reais, while BRADESCO PN (BVMF:) fell 0.77%, to 14.15 reais. Still in the financial sector, B3 ON (BVMF:) lost 1.3%, to 12.33 reais.
– IRB (RE) ON) (BVMF: rose 1.96%, to 40.49 reais. The reinsurance company announced on Thursday night a net profit of 22.3 million reais for July, in compared to a loss of 58.9 million reais in the same month last year. At its previous high, the share rose to 42.99 reais.
– CASAS BAHIA ON fell 8.11%, to 0.68 reais, accumulating a decline of 38.8% in the month following a loss of 41.2% in August. MAGAZINE LUIZA ON (BVMF:) lost 4.68%, to 2.24 reais. In food retail, CARREFOUR BRASIL ON (BVMF:) advanced 2.81%, to 9.15 reais, after six trading sessions of decline.
– BRASKEM PNA (BVMF:) fell 3.29%, to 20.59 reais, having renewed its intraday low since the beginning of May at 20.4 reais. The shares remain under pressure due to the uncertainties surrounding an expected sale of Novonor’s stake in the petrochemical company.
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