2023-06-13 23:12:08
By Paula Arend Laier
SÃO PAULO (Reuters) – The Ibovespa closed lower on Tuesday, reflecting profit-taking movements after seven consecutive high sessions, taking off from the more positive performance of Wall Street, amid expectations of a break in the tightening cycle currency in the United States.
Reference index of the Brazilian stock market, the Ibovespa fell 0.51%, to 116,742.71 points, after rising more than 8% in the previous seven trading sessions. At the high of the day, earlier, it reached 117,924.06 points. At a minimum, 116,363.43 points.
The financial volume totaled 27.97 billion reais, in a session on the eve of the expiration of options on the Ibovespa and the futures index.
For analyst Matheus Lima, from Top Gain, this is a “healthy correction” after an upward rally that made the Ibovespa break the year’s highs this week, trading at price levels that had not been seen for a long time.
He pointed out that the US inflation data, released earlier, was positive news, corroborating bets on a break in the monetary tightening cycle in the US on Wednesday, but that the market had already been pricing in.
On Wednesday, the Federal Reserve announces its monetary policy decision and most market bets point to maintaining interest rates in the range of 5% to 5.25% per annum.
On Wall Street, the S&P 500 advanced 0.69%. At B3, shares of commodity companies were still supported by the Chinese BC’s decision to cut a short-term loan rate, which was interpreted in the market as a sign of a possible reduction in long-term rates next week.
According to Blue3 Investimentos specialist Gabriel Felix, the decision favors commodities, but was not enough in the session to prevent the Ibovespa from falling, which reflected the effects of profit-taking movements.
“A correction after consecutive days of increases is natural and even welcome,” he said. Papers more sensitive to the Brazilian economy, such as those of consumer companies, which had been showing a positive performance in the wake of expectations of an earlier reduction in the Selic rate, in turn, were among the biggest falls, still affected by the rise in the yield curve.
HIGHLIGHTS
– VALE ON advanced 1.06%, to 67.83 reais, as iron ore futures contracts on the Singapore and Dalian exchanges recovered this Tuesday, with the improvement of market sentiment after the BC of China, largest steel producer in the world, reduced the short-term borrowing rate.
– EMBRAER ON rose 2.08% to R$20.08. Citing the proximity of the Paris Air Show, on the 19th and 25th of June, analysts at JPMorgan – which already has “overweight” for the shares – recommended adding positions in Embraer, stating that they expect a positive flow of news about new orders. Also, Citi analysts raised the price target of the company’s ADRs from 15.75 to 16.50 dollars
– PETROBRAS PN closed down 0.54%, at 28.86 reais, despite the rise in oil prices abroad. PRIO ON, in turn, rose 3.62%.
– ITAÚ UNIBANCO PN closed with an increase of 1.13%, at 27.81 reais, and BRADESCO PN increased 0.12%, at 16.74 reais. Analysts at UBS BB raised the target price for Itaú from 35 to 36 reais and reiterated a buy recommendation, as well as for Bradesco, which remained with the target price of 21 reais. Also on the radar was the decision of the Federal Supreme Court (STF) on the payment of PIS/Cofins.
– SANTANDER BRASIL UNIT appreciated 1.61%, to 30.30 reais, after falling more than 3% the day before, when it brought forward the decision of the Federal Supreme Court (STF) on the payment of PIS/Cofins. Earlier, the bank said that the total estimated value of the lawsuits is 4.5 billion reais before taxes and that it will decide on appropriate measures. UBS BB also raised the target price of the units from 29 to 31 reais, but maintained the “neutral” recommendation.
– LOJAS RENNER ON fell 5.78%, to 21.50 reais, on a negative day for domestic cyclical papers, with Citi’s report still on the radar, cutting the recommendation of the papers to “neutral”. In the same vein, CVC BRASIL ON dropped 6.90%, while GOL PN dropped 5.03%. AZUL PN lost 4.42% with the announcement of an offer to exchange existing senior debt securities with maturities in 2024 and 2026 for securities expiring in 2029 and 2030, respectively.
– AMERICANAS ON, which is not on the Ibovespa, rose 6.03%, to 1.23 real, slowing down from the high of the session, when it reached 1.38 real after information on a report by legal advisors released by the company indicating that the financial statements of the retailer were being defrauded by the company’s previous board. The Chief Executive of Americanas, Leonardo Coelho Pereira, was still participating in the CPI hearing on the retailer when trading ended.
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