2023-06-09 22:35:40
© Reuters. Stock market B3 28/10/2021 REUTERS/Amanda Perobelli
Por Andre Romani
SAO PAULO (Reuters) – O had its sixth session of highs in a row this Friday, with the maintenance of domestic optimism after the Corpus Christi holiday, which helped to bring a flow of foreign investors to the stock market.
Petrobras and Banco do Brasil were the main positive influences on the index. Vale (BVMF:), which reversed earlier highs, and Weg (BVMF:) were at the opposite end.
Reference index of the Brazilian stock market, the Ibovespa rose 1.33%, to 117,019.48 points. At its maximum, it scored 117,602.97 points. The financial volume totaled 29.3 billion reais.
In the week, the Ibovespa advanced 3.96%. This is the seventh week in a row that the index has accumulated positive performance, the longest sequence since the end of 2020.
“We believe that the strong performance of the index today is an extension of the upward movement of the last few days”, said analyst Luis Novaes, from Terra Investimentos.
He cited factors such as the advancement of the fiscal framework in Congress, discussions on tax reform, a drop in interest expectations with positive data on inflation and the prospect of ending the cycle of high US interest rates.
“These factors are being responsible for unlocking the value of the index and risk assets, which were discounted”, added Novaes.
Interest prospects in Brazil and the United States have been in focus in recent days. Around here, the lower-than-expected May IPCA, released on Wednesday, reiterated expectations that the Selic rate will fall in the second half of this year. In the United States, the majority market estimates point to an interruption in interest rate hikes next week.
This moment of more optimism may be leading to the inflow of foreign funds into the stock market, as well as the recomposition of positions by the fund industry, which had left variable income in recent months.
“Due to intraday purchases, foreign banks are leading the buying movement, which suggests a foreign entry,” said Nicolas Borsoi, chief economist at Nova Futura Investimentos.
He pointed out, however, that other factors also helped the index in the session, such as the drop in future interest rates and an adjustment with the external market, since the B3 (BVMF:) was closed the day before for the holiday.
The inflow of foreign funds into the country, counting follow-ons, is 10.1 billion reais in 2023 until June 6. This month, the balance is 560.3 million reais.
On Wall Street, the main stock indices closed slightly higher, up 0.11% from , with Tesla (NASDAQ:) after General Motors (NYSE:) adopting the automaker’s standard battery recharging system of electric vehicles. On the radar are US inflation data and interest rate decision by the Federal Reserve (Fed) next week.
The day before, when the Brazilian market was closed, there were also gains for indices in New York.
HIGHLIGHTS
– PETROBRAS P.N. (BVMF:) soared 4.88%, at 30.28 reais, the sixth straight increase, even amid the 1.5% drop in foreign prices. The state-owned company announced on Wednesday night the completion of the sale of Polo Potiguar to 3R. For Citi, the deal represents the end of an era of successful divestments, although some deals have yet to close. 3R PETROLEUM ON (BVMF:) lost 1.84% at 32.57 reais after rising earlier.
– CVC (BVMF:) BRASIL ON jumped 9.86%, to 4.57 reais, after the tourism group announced the hiring of Citigroup (NYSE:) and Itaú BBA to coordinate a potential IPO to raise at least BRL 200 million.
– HYPERA ON increased 4.3%, to 45.84 reais, after an unidentified shareholder sold 5.19% of the pharmaceutical company’s share capital this Friday, in a block trade of 1.51 billion reais, according to information from B3 .
– VALE lost 0.45%, at 68.36 reais, after a solid rise at the opening. The pullback came on the back of gains in Asia, with signs that the biggest steel producer, China, is moving to support its economy. The most-traded contract in Dalian, China, rose 3.4% in daytime trade to RMB 812 ($114.03) a metric ton.
– COPEL PNB (BVMF:) gained 3.64%, at 7.98 reais, the sixth consecutive increase, after the state-owned company from Paraná approved the referral to shareholders of a series of changes in the bylaws that would allow the privatization of the company, expected to take place in the second half of this year.
– ITAÚ UNIBANCO PN (BVMF:) increased by 1.39%, to 27.8 reais, after announcing investment of 1 billion reais in Engie’s wind power project — ENGIE BRASIL ON (BVMF:) rose 1. 46%. The private bank also approved distribution of interest on equity to shareholders of 0.2663 per share. Friday was positive for the financial sector, with emphasis on BANCO DO BRASIL ON (BVMF:), which increased by 4.88%.
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