Ibovespa melts 2% in reaction to IR reform; Via (VIIA3) sinks 6%

Ibovespa melts 2.28% in reaction to the reform of the Income Tax;  Via (VIIA3) sinks 6% and banks also fall
Ibovespa. Photo: Pixabay

Against Wall Street, the Ibovespa today it plummeted 2.28%, dropping to 116,677.08 points, in a bad mood after the approval of the basic text of the Income Tax (IR) reform and the amendment that establishes a 15% tax on dividends. Bank shares plummeted and those of Via (VIIA3) were also impacted, along with those of retail.

The financial turnover was BRL 34.0 billion in the session and, in the week, the Ibovespa increases losses to 3.32%, with a 1.77% decrease in these first two days of September – in the year, once again the index oscillates to the negative (-1.97%).

It was the first time since August 20 that the B3 benchmark returned to operating below 117 thousand points on the intraday, reaching this Thursday the lowest closing since August 18 (116,642.62), which had been the worst since April 1 ( 115,253,31). In percentage, it was the biggest drop since July 30 (-3.08%).

The fall of large companies is related to specific parts of the income tax reform. In addition to establishing a dividend tax, the project provides for the end of interest on equity (JCP). The approval weighed especially on the banking sector – which uses the modality to remunerate shareholders – and on the Ibovespa.

“Large companies have ways of diluting this dividend taxation process. Of course, uncertainties still exist. The market does not like this type of reform, because it affects the core of the economy, which are companies that earn more than BRL 4.8 million to 74 million, and will not have exemption from dividends,” he said Jansen Costa, founding partner of Factorial Investimentos.

Ibovespa movement today

At bank shares fell in block this Thursday (2), while the market digested the income tax reform. Santander Brazil (SANB11) was among the biggest lows today, down 5%; followed by Banco do Brasil (BBAS3), 4%. Itaú Unibanco (ITUB4) and Bradesco (BBDC4) gave 3%.

THE Ambev (ABEV3), another negatively impacted by the end of the JCP instrument, sank 4%.

Still on the negative end of the Ibovespa, there are sectors with exposure to the domestic economy, such as Cielo (-6.47%), Via Varejo (-6.13%) and Lojas Americanas (-5.86%), also reflecting the weak data . On the opposite side, few companies detach themselves from the negative sentiment, including Assaí (+2.99%), Engie (+1.03%) and PetroRio (+0.75%).

Among the biggest losers of the day, banks, falling “in fact”, pressured by the “end of JCP (interest on equity) and the lower-than-expected cut of CSLL”, observes Rafael Ribeiro, an analyst at Clear Corretora. Among the largest institutions, the highlight was the drop of 5.23% in the Santander Unit, 4.14% for BB ON and 3.81% for Bradesco ON.

the role of assai (ASAI3) led the few Ibovespa highs today, after the retail chain announced the conclusion of the sale of two of the five properties negotiated in July, for R$ 134.5 million. It was the only one in the retail sector that did not fall into this heavy day of bad mood after the reform of the IR.

Ibovespa melts 2% in reaction to IR reform;  Via (VIIA3) sinks 6%
Ibovespa today. Photo: Reproduction Status Invest

Highest Ibovespa

The biggest increases of the Ibovespa today were:

Ibovespa’s biggest casualties

The Ibovespa’s biggest casualties today were:

  • Cielo (CIEL3): -6.47% / R$ 2.60
  • Copy (VIIA3): -6.13% / R$9.64
  • Lojas Americanas (LAME4): -5.86% / R$ 5.78
  • Santander Brasil (SANB11): -5.23% / R$ 39.48
  • Eletrobras (ELET3): -4.99% / BRL 36.75

News that moved the stock exchange

  • Chamber reduces dividend taxation
  • Hering will no longer be traded on B3
  • Rationing risk increases to 17.2%

Clearinghouse reduces dividend taxation from 20% to 15%

The Chamber of Deputies approved the amendment to the income tax reform which reduces the rate of taxation on profits and dividends from 20% to 15%. The score was 319 in favor against 140 against.

The proposal to institute a rate of 20% was in the basic text of the reform of the Income Tax, approved this Wednesday (1). Individuals have been exempt from taxation on profits and dividends since 1996.

Hering shares (HGTX3) will no longer trade on B3 on September 20

The shares of Cia. Hering (HGTX3) will be replaced by shares of the Group Sum (SOMA3) as part of the business combination process Share replacement is scheduled to take place on September 20th.

The operation will begin with the exchange of Hering’s common shares for preferred shares of the privately held company Cidade Maravilhosa, which should take place on the 17th. Later, the shares will be incorporated into SOMA3 shares and the shareholders will migrate to Soma’s shareholding structure.

Risk of energy rationing increases from 5.5% to 17.2% in XP’s analysis

Brazil is experiencing the worst water crisis in 91 years. Since April, the rain level has been below average and the rivers that supply the hydroelectric reservoirs are increasingly dry. According to XP, in August, the Brazilian hydrological scenario worsened significantly, to the point where the risk of rationing more than double.

“The deterioration in relation to our previous expectations can be explained by a significantly lower ENA (amount of water that reaches the hydroelectric plants, in energy units). As a result, we have updated our estimates and see the probability of rationing in the next 12 months increase to 17.2% from 5.5%.”

Performance of the main indexes

In addition to the Ibovespa, check out the closing of the main stock exchange indices today:

  • Ibovespa today: -2.28% / 116,677.08
  • IFIX today: -0.19% / 2,745.42
  • IBRX today: -2.03% / 50,118.26
  • SMLL today: -2.07% / 2.786.57
  • IDIV today: -2.41% / 6,676.77

Latest Ibovespa quotation

At the close of trading on Tuesday (31), the Ibovespa rose 0.52% to 119,395 points.

(With the news agency Câmara de Notícias and Estadão Conteúdo)