Vale and steel stocks rise with attention to iron ore; Braskem has a slight increase after a high rating by S&P

SAO PAULO – The Ibovespa is seeking a recovery, albeit timid, after the sharp drop the day before amid the impact of the approval of the reform of the Income Tax on assets. The high of the session is driven by Vale (VALE3) and steel companies such as CSN (CSNA3), Gerdau (GGBR4) and Usiminas (USIM5).

Iron ore futures contracts rose for the first time this week amid optimism that increased construction activity in China in the coming months will offset the impact of steel production restrictions imposed by the Beijing government.

The raw material used in steel manufacturing rose 4.6% on Friday, but still shows a drop of around 9% this week. Prices have accumulated a low of around 30% since mid-July, under the impact of the Chinese government’s measures to limit steel production and reduce carbon emissions. See more by clicking here.

Also on the industry’s radar, Gerdau executives signaled, during Investor Day, that they may anticipate the payment of dividends to shareholders referring to 2021 due to the reform of the IR.

Braskem (BRKM5) also records gains, albeit more timid in relation to the opening, of around 1%, after S&P raised the credit rating assigned to Braskem, from BB+ to BBB-, to investment grade, with a stable outlook.

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On Thursday, the S&P rating agency raised the credit rating assigned to Braskem, from BB+ to BBB-, to investment grade, with a stable outlook.

In a report, S&P cited Braskem’s solid cash flow in the first half and the fact that the company had reduced its gross debt by about $1.7 billion.

“The stable outlook indicates our view that the company will maintain leverage at about or below 2.5x over the next two to three years, despite expectations of lower petrochemical spreads in the future,” the agency said.

Engie Brazil (EGIE3)

Engie Brasil, the arm of the French company Engie, put into operation this Thursday the last three of the 11 wind farms in its Campo Largo II asset, with 361.2 MW of total installed capacity, after authorization from the regulatory agency Aneel, according to a statement sent to the market.

Campo Largo II is located in the municipality of Umburanas, approximately 420 km from Salvador (BA), the same region where the company already commercially operates the Campo Largo and Umburanas wind farms (686.7 MW of installed capacity). The delivery takes place at a time when the government has been seeking alternatives to guarantee energy supply, amid the biggest water crisis in more than 90 years, which affects hydroelectric reservoirs, the largest source of energy in Brazil.

On Wednesday, mining company Vale began operating its first six autonomous off-road trucks in the Carajás Complex, in Pará, expanding the use of technology already used in Minas Gerais, which does not require the presence of operators inside the cabins, in search of more safety. , operational and environmental gains. In Carajás, Vale’s largest iron ore production complex is located, and the company says it hopes to increase productivity.

At an annual meeting with investors, held virtually on Thursday, Gerdau executives signaled that they will be able to bring forward the payment of dividends to shareholders for 2021, after the Chamber of Deputies approves the Income Tax reform, establishing taxation of dividends and ending with the interest on equity (JCP) mechanism. Gerdau’s investor relations director, Harley Scardoelli stated that the dividend distribution rate should remain at around 30% for the time being.

Fleury, through its wholly owned subsidiary, Fleury Advanced Medical Procedures Center (Fleury CPMA), has completed the purchase of 100% of Laboratório Pretti.

Fleury CPMA also completed the purchase of 100% of Laboratório Bioclinico. The two laboratories are located in Espírito Santo.

“The two acquisitions mark the entry of Grupo Fleury in the State of Espírito Santo, and represent another strategic move for the Company, expanding its national reach and further complementing its offer in the Southeast region of the country,” stated the company.

Sinqia priced its follow-on offer at R$23 per share, resulting in an amount of R$400 million. According to the company, the amount will be used for acquisitions and investments in the application software market for the financial sector.

Pan Bank (BPAN4)

Banco Pan announced a strategic partnership with Luciano Huck. The presenter will be an advisory member of the board of directors and the marketing committee, in addition to participating in the bank’s communication campaigns.

“Luciano has a successful trajectory as a presenter and entrepreneur, with great capacity for dialogue with society and an innovative profile. Throughout his career, he approached the most diverse social, economic and cultural realities in the country, and now he will contribute to having a dialogue that is ever closer and more suited to the needs of our clients”, according to Carlos Eduardo Guimarães, CEO of Pan .

“Walking around the country, I learned a lot from Brazilians, about their joys and also their pain. I join the Pan with a complementary look in the strategic definition not only of financial products, but also of education, inclusion and creation of tools that generate more opportunities for society”, said Luciano Huck.

(with Reuters and Estadão Content)

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