Ibovespa closes higher and starts September in the blue after 2 months of losses By Reuters


© Reuters. Man watches electronic panel with financial market quotes. 6/21/2021. REUTERS/Kim Kyung-Hoon

By Paula Arend Laier

SAO PAULO (Reuters) – It closed higher on Wednesday, starting September in the blue after two consecutive months of losses, reflecting the favorable external scenario, as well as adjustments to traditional positions at the beginning of the month.

Reference index of the Brazilian stock exchange, the Ibovespa rose 0.52%, to 119,395.60 points. The financial volume of the session totaled 29.5 billion reais.

The day before, the Ibovespa had a decline of 0.8%, accumulating a 2.5% loss in August, after a 3.9% drop in July, amid worsening sentiment towards Brazil with a perception of increased risks fiscal and political.

Strategists at BTG Pactual (SA:) see the São Paulo stock exchange still volatile and without a trend in September, while investors await the outcome of the new expanded social program and payment of court orders, according to a report to clients.

“The market wants a solution that respects, as much as possible, the spending ceiling – the powerful, but unfortunately the only fiscal anchor in Brazil,” they said, noting that preserving this rule could rekindle the stocks’ upward trend.

Abroad, the index renewed highs, with weaker-than-expected data on US private sector jobs, while manufacturing activity picked up.

Earlier reported that 374,000 jobs were created in the private sector in August, below the forecast by economists, who estimated the creation of 613,000 jobs.

The national manufacturing activity index measured by the Supply Management Institute (ISM), in turn, rose to 59.9 in August, compared to 59.5 in July and above expectations.

For the investment director at Reach Capital, Ricardo Campos, the expectation that this set will lead to the maintenance of stimuli by the Federal Reserve helped the Ibovespa.

“Despite the better ISM, the lower ADP number makes investors more reassured that interest rates will not rise anytime soon (in the US),” he said.

In Brazil, the session was also marked by data showing that the Brazilian economy shrank 0.1% in the second quarter, reflecting weak performances in industry and agriculture, which overshadowed the strength of services.

HIGHLIGHTS

– B3 ON (SA:) advanced 2.56%, the second consecutive high, after ending August with a decline of 7.7%, with analysts assessing that the effects of lower than expected volumes, competition and legal risks, have already are in the price.

– MARFRIG ON (SA:) closed up 4.88%, renewing highs since March 2010, in a session without a single bias in the protein sector, with JBS ON (SA:) ending stable and MINERVA ON (SA:) falling 1.67%.

– ENEVA (SA:) ON appreciated 4.02%, in an adjustment session after losing 7% last month, in a positive session for the electricity sector, with the segment index on B3 advancing 2.43%, compared to radar the water crisis in the country.

ELETROBRAS ON (SA:) advanced 2.79%, after the government took another step towards capitalizing the electricity, setting at 62.5 billion reais the value added by the new generation concession contracts for the company’s 22 plants.

– VALE ON (SA:) rose 0.17%, reversing losses from the beginning of the trading session, with the mining and steel sector ending without a single sign, after another session of low prices in China. PNA USIMINES (SA:) retreated 2.59%.

PETROBRAS PN (SA:) fell 0.55%, amid slight fluctuations abroad, in addition to noise involving fuel prices in the country.