Ibovespa hesitates amid holidays and demonstrations; Valley weighs by Reuters


© Reuters.

SAO PAULO (Reuters) – The São Paulo stock exchange hesitated on Monday, the eve of a national holiday and without the reference to Wall St for a holiday in the US, which tends to reduce liquidity in business and corroborate more measured positions before demonstrations scheduled for Independence Day in Brazil.

At 10:39, the fell 0.01%, to 116,919.39 points. The financial volume totaled 1.9 billion reais.

In the view of the chief economist of SulAmérica Investimentos, Newton Rosa, the holiday in the US and the eve of a local holiday impose caution on the Brazilian stock exchange, in addition to significantly reducing business liquidity, according to comments sent to clients earlier.

“Concerns that the demonstrations scheduled for tomorrow may aggravate the environment of political-institutional instability should keep the Ibovespa fragile,” he added.

President Jair Bolsonaro has been betting his chips on the September 7 acts – summoned by him – as a show of strength and popular support, at a time of tension with the judiciary and falling popularity.

There are also expectations of demonstrations against Bolsonaro and his government.

In New York, the sessions were closed for Labor Day in the United States.

HIGHLIGHTS

– VALE ON (SA:) lost 2%, with the mining and steel sector as a whole among the biggest drops in the Ibovespa. Oil prices fell more than 6% this session, with the Dalian benchmark hitting its lowest level in seven months.

PETROBRAS PN (SA:) had an increase of 0.3%, in a session with well-behaved variations in foreign market prices. In the sector, PETRORIO ON (SA:) gave 1.4%.

– MINERVA ON (SA:) rose 2.2%, reversing the weakness of the opening, when it reached an intraday low since April 2020, against the backdrop of Brazil’s decision to suspend the country’s exports to China after two cases of atypical mad cow in the last week in the country. The company said earlier that subsidiary Athena Foods will continue to meet Chinese demand for beef. In the sector, MARFRIG ON (SA:) advanced 0.5% and JBS ON (SA:) had an increase of 0.8%, also moving away from the lows. Marfrig also highlighted that it has other units in South America enabled by China.

– BANCO INTER UNIT (SA:) advanced 1.4%, endorsed by a report by Bradesco BBI, reiterating the ‘outperform’ recommendation for the papers and raising the target unit price to 81 reais, from 80 reais before. In the sector, ITAÚ UNIBANCO PN (SA:) appreciated by 0.7% and BRADESCO PN (SA:) recorded an increase of 0.8%.

(By Paula Arend Laier; )

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