Ibovespa closes higher since January endorsed by abroad and fiscal signals By Reuters


© Reuters. People watch B3 electronic panel in São Paulo. 3/9/2021. REUTERS/Amanda Perobelli

By Paula Arend Laier

SAO PAULO (Reuters) – The currency closed higher on Tuesday, driven by the positive influence of foreign markets, particularly commodities such as Brazil, as well as statements seeking to alleviate concerns about the fiscal scenario in the country.

Reference index of the Brazilian stock exchange, the Ibovespa rose 2.33%, to 120,210.75 points, accelerating the rally after the adjustment and marking the biggest daily advance since the end of January. The financial turnover in the trading session totaled 29.75 billion reais.

Full Vaccine Approval to do (NYSE:) (SA:)/BioNTech (NASDAQ:) (SA:) against Covid-19 by the FDA, the US food and drug agency, the day before, even echoed in the markets, supporting actions of companies related to the reopening of the economies in addition to commodities.

In Wall St, he renewed records, while financial agents continue to look forward to the Federal Reserve symposium in Jackson Hole in search of more clues about the next steps of the North American BC.

In the view of the investment director at Kilima Asset, Eduardo Levy, the more confident global scenario, especially in developed markets, supported the advance of the Ibovespa, in addition to the calmer climate in the Brazilian market.

“It was a day of relative calm, especially after the more volatile days we went through and the stress caused on the dollar and on the interest rate curve,” he noted.

This more positive climate gained strength after statements by the president of the Chamber, Arthur Lira, ruling out that Congress will vote on measures that go against fiscal responsibility or default in the case of court orders.

“There hasn’t been and there won’t be the slightest sign that we will have a break in fiscal responsibility,” he said in an online event organized by XP Investimentos.

According to the manager of Galapagos Capital Ubirajara Silva, the market has suffered from the conflict between the Powers and the concern with the fiscal situation, and Lira’s speech reaffirming commitment to the spending ceiling was very well received.

“This made the market liven up”, he evaluated, also highlighting the relief in the future interest curve and the sharp drop in the , which also helped the stock market, with a positive effect on sectors linked to the domestic market.

Silva drew attention to the behavior of foreigners on the São Paulo stock exchange, with a positive balance in the Bovespa segment at 7.548 billion reais in August until the 20th, despite the Ibovespa accumulating a 3.55% drop in the month until the eve.

“Even with the realization in the market this August, foreign investors are buying,” he said, noting that it is important to follow this flow, as well as news regarding the spending ceiling and the country’s fiscal scenario.

HIGHLIGHTS

– VALE ON (SA:) rose 3.65%, supported by the recovery in iron ore prices in China, with the most traded commodity contract in Dalian jumping more than 6%. In the sector, PNA USIMINES (SA:), CSN ON (SA:) and GERDAU PN (SA:) also advanced strongly.

PETROBRAS PN (SA:) closed with an increase of 2.07%, expanding the previous day’s gains, on another day of high market prices, with a 3.35% rise, compared to more positive prospects for the demand for the commodity.

– CYRELA ON (SA:) soared 12.33%, amid the relief in future interest rates, against the backdrop of a Bradesco BBI report assuming the company’s coverage with an ‘outperform’ recommendation for the shares and a target price of 28 reais — an upside of more than 50% from Monday’s close.

– GOL (SA:) PN jumped 10.97%, in a positive session for travel stocks, after news of FDA approval of a vaccine in the US, with BLUE PN (SA:) up 7.3%. In the same context, CVC (SA:) BRASIL ON closed with an increase of 6.38% and EMBRAER ON (SA:) appreciated 8.13%.

– LOJAS AMERICANAS PN (SA:) advanced 11.81%, with the more buying climate supporting some recovery, although it still accumulates a loss of around 17% in August, in the wake of adjustments related to the merger of certain assets of the company with the former B2W (SA:), now called Americanas. AMERICAN ON rose 9.69%.

– COSAN ON (SA:) gained 1.63%, after announcing a new investment strategy the day before, including entering into mining. The company said that the joint venture in this area should start producing in Pará in 2025, with an initial capacity of 10 million tonnes of iron ore per year.

– JBS ON (SA:) fell 3.26%, among the few drops in the Ibovespa, amidst movements of profit pockets, which ended a sequence of four consecutive rises, in which it accumulated an increase of more than 9%. In the sector, MINERVA ON (SA:) fell 0.35%.

(Edited by Aluísio Alves)