The loss trajectory of the Ibovespa, which had been taking place despite the records observed in New York, was interrupted on Tuesday. With investors finding relief in the statements of the mayor, Arthur Lira (PP-AL) and in the midst of a more positive external scenario for risk taking, the main index of the Brazilian stock market had a steady rise, regaining the level of 120 thousand points and returned to positive terrain in 2021.
The Ibovespa closed the day up 2.33%, at 120,210.75 points, close to intraday highs, in which it scored 120,463 points. The aggregate financial volume traded on the local stock exchange today was R$29.86 billion. Year-to-date, the index is now up 1%.
The external scenario was more favorable today and contributed to the good mood of local businesses. Reflecting the picture of improvement in the pandemic in China, the country’s indices closed at a steady high and boosted commodities, with gains seen in the prices of iron ore and oil.
The movement, in turn, boosted companies related to basic materials in Brazil. The shares of Vale ON, which came from significant falls recently, ended the trading session at a high of 3.65%. Steelmakers also entered the positive dynamics and ended the day with gains: CSN ON rose 5.35%, Gerdau PN rose 3.73% and Usiminas PNA registered an increase of 7.10%.
Unlike what happened in recent weeks, however, the more favorable external scenario found a political environment without new negative facts, in the view of market participants.
Also, the statements by the president of the Chamber, who reiterated Congress’ commitment to the current fiscal rules, gave new impetus to the markets, which had been looking for catalysts to justify a new increase after the recent losses. “Congress never gave a iota of possibility that we could break the spending ceiling,” said Lira. “There has not been and will not be any sign of a break with fiscal responsibility by Congress,” he said, in an online participation at Expert XP.
According to Ariane Benedito, an economist at CM Capital, the improvement in the external scenario, by itself, would justify a more positive day for local assets, given the boost in commodities. Lira’s statements, however, brought extra optimism by momentarily alleviating an already loaded newscast related to tax issues.
“Today we see long interest rates falling. Every time we make a decision or talk, which the market understands as an improvement in the political and fiscal scenario, the interest rate market responds positively,” said the economist.
Thus, sectors sensitive to long interest rates registered positive performance in today’s trading session. In this category, the roles of construction companies and e-commerce companies can be highlighted. MRV ON shares rose 6.65%, Eztec ON advanced 10.61% and Cyrela ON gained 12.33%. In electronic retail, Americanas ON rose 9.69%, Magazine Luiza ON rose 6.12% and Via ON advanced 4.63%.
Toro’s investment expert, Helder Wakabayashi, also points out that, in the wake of the full approval of Pfizer’s vaccine in the US by the Food and Drug Administration (FDA), the US regulator, travel and tourism-related companies noted positive performance in the trading session. of today. “The news that Spain allowed the entry of Brazilian tourists with any of the vaccines administered here also gave strength to the papers”, he commented.
CVC ON shares closed the day up 6.38%, while Gol PN shares rose 10.97% and Azul PN advanced 7.30%.
— Photo: Gerd Altmann/Pixabay