SAO PAULO – Continuing the movement registered the day before after President Jair Bolsonaro’s (non-party) nod to the Supreme Court (STF), the Brazilian Stock Exchange registers gains this Friday (10), although with more timid movements against the high of 1.72% the day before.
Petrobras shares (PETR3; PETR4 came to open with gains of around 1%, after a session of strong volatility the day before. However, the shares softened the rally, with assets PETR4 up 0.2% and 0 .61% for PETR3. It is worth noting that the day is of gains for oil, with the WTI futures contract expiring in October and the Brent for November with gains of more than 2%, heading to close the week on a high even with uncertainties about global demand for the commodity.
Vale’s shares (VALE3) also advanced by more than 1%, while CSN (CSNA3) was up by more than 2%. CSN announced the purchase of the Brazilian activities of the Swiss construction materials group Holcim, valued at US$ 1.025 billion.
But, among the biggest highs, are the assets of Méliuz (CASH3), with gains of about 6% following the movement of the day before and having partial recovery after the fall of 11% on Wednesday, in a generalized low session of the markets. It is also worth mentioning that the CASH3 share was split the day before, which increases the liquidity of the shares.
Shares of exporting companies, as in the case of Suzano (SUZB3), which has a decrease of around 2% of shares, continue to fall on a day of continued low in the dollar.
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B3 is evaluating the realization of an issue of debt securities in the international market, as informed through a relevant fact this Friday (10).
According to the company, the resources – if the operation is carried out – would be used for the ordinary management of the Brazilian stock exchange operator’s business.
B3 intends to start, as of this Friday, meetings with potential investors.
According to Valor, Yduqs intends to make an offer to acquire CEUB, a university center in Brasília, which is also disputed by Ânima.
The center is valued at around R$ 800 million by the Rio de Janeiro group, but there is a tax liability that is a reason for discussion between interested parties and the seller, the newspaper points out.
Swiss construction materials group Holcim said it would sell its activities in Brazil, valued at US$ 1.025 billion, to Companhia Siderúrgica Nacional (CSN).
According to Morgan Stanley, at first glance, the valuation seems attractive at first sight, reaching US$ 100 per ton of cement against US$ 262 per ton and US$ 192 per ton paid on average in the 2018-2019 negotiations, respectively. In addition, the $100 a ton compares to the $167 a ton that CSN Cimentos recently paid for Elizabeth Cimentos’ assets.
On the other hand, the Administrative Council for Economic Defense (Cade) could be a problem, as Lafarge’s assets are located mainly in the southeast region of Brazil, which is CSN Cimentos’ main market.
“Consequently, we believe that the regulator’s approval may come with some remedies, requiring CSN Cimentos to sell some of its assets in the region,” Morgan analysts assess.
UBS BB began coverage of Raízen’s shares with a purchase recommendation, highlighting the prospect of favorable growth with renewable energies. The target price is R$9.60, or a potential increase of almost 50% compared to the previous day’s closing.
Analysts point out that Raízen operates in fuel distribution in Brazil and Argentina, in Renewables and Sugar. “On the last two, Raízen reached a scale that we consider difficult to match, allowing it to surf the favorable and, in our view, structural scenario for sugar and ethanol. Furthermore, after its IPO, Raízen appears determined to deliver strong growth in renewables, and while these returns may fall off the horizon of what the average equity investor tends to consider, we see this as a rare opportunity in advanced biofuels and energy. renewable”, they point out.
Petrobras informed the market that it has completed the settlement of the term of commitment signed with the Petrobras Foundation for Social Security (Petros) for the migration of the Petros plans from the Petrobras Re-agreed and Not Re-agreed System to the Petros-3 Plan. The settlement amounted to R$ 1.27 billion, “duly updated”.
Also highlighted, the state-owned company announced on Friday that it had approved new contractual models for the sale of gasoline A and road and marine diesel oil for fuel distributors.
According to the company, the new contractual models aim to “simplify some processes, increase competitiveness and bring flexibility to Petrobras in adopting new commercial strategies”.
“In the current market scenario, characterized by the entry of product imported by third parties and by the process of divestment of refining assets, it is necessary to promote improvements in some commercial and operational clauses. These adjustments, defined based on the experience gained over the period of validity of the current contracts and as a result of customer feedback, seek to strengthen the commercial relationship with our customers and the company’s competitiveness”.
PetroRio reported that total oil production in August reached 33,593 barrels of oil equivalent per day (boepd). The number represents an increase of 11% from the 30,228 boepd recorded in July. The largest production was from Campo de Frade, with 16,588 boepd, down 0.16% from the previous month, when a volume of 16,616 boepd was recorded.
PetroRio highlights that in August, production in the Polvo field was affected by the workover (type of intervention in wells) of well POL-012-R, which was completed in the first fortnight of the month. The cluster formed by Campo do Polvo and Campos de Tubarão Martelo (TBMT) recorded a production of 15,054 boepd, an increase of 29.5% compared to 11,622 in the previous month.
In the commodities market, iron ore futures at the largest steel producer, China, fell on Friday towards a second consecutive weekly loss, with the Dalian benchmark price hovering near its lowest level in seven months due fear of further restrictions on steelmaking activity.
January’s top-traded iron ore on the Dalian Commodity Exchange ended the day’s trading down 0.3% at RMB 732.50 ($113.66) a ton. It hit RMB 717.50 per tonne on Thursday, the lowest since February 4th.
The October contract for the steel ingredient on the Singapore Stock Exchange was down about 1%. Spot iron ore remained at a nine-month low, at $131.50 a ton, on Friday, data from consultancy SteelHome showed.
On Vale’s radar, the mining company may increase cash disbursements related to the Brumadinho disaster this year by up to 21.6%, compared to 2020, according to information published by the company on Thursday. The forecast is that the expenses from the collapse of the dam in the city of Minas Gerais, which occurred in 2019, will be between US$ 2.7 billion and US$ 3.2 billion in 2021, against US$ 2.632 billion last year. The amount includes damage repair agreements, donations and damage to dams, among others.
In addition, in a virtual meeting with market analysts on Thursday, Vale presented the “green briquette”, a new product developed over 20 years that should go into production in 2023, and which the company says it can reduce by up to 10 % the emission of greenhouse gases (GHG) in the steel production of its steelmaking customers. In a statement, the mining company said that the product is made up of iron ore and a technological solution of binders, which includes sand from the treatment of mining tailings in its composition, and is capable of resisting the high temperature of the blast furnace without becoming disintegrate.
Morgan Stanley highlighted that Vale is well positioned to benefit from the carbon reduction trend, and highlights that the company offers good quality iron ore, with aggressive emissions reduction targets of 15% compared to the 2018 level.
The bank also points out that Vale recently raised its target on expanded net debt from US$ 10 billion to US$ 15 billion, which gives more room to pay dividends, in the bank’s assessment. The company must announce its dividend proposal by the end of the month. The bank maintains an overweight valuation (perspective of appreciation above the market average) for Vale, supported by the continued increase in iron ore prices in the second half of the year. The target price is US$26 for VALE shares traded on the New York Stock Exchange.
Eletronorte signed a sale agreement for its entire 49% stake in Norte Brasil Transmissora de Energia (NBTE) for R$700 million.
According to the statement, the purchase and sale agreement was signed on this date between Eletronorte and Leovac Participações, held by the Ontario Teachers Pension Plan Board (OTPP). “The operation will be completed after obtaining the appropriate approvals from Aneel, Cade and creditors, the payment and transfer of shares in the NBTE Share Registration and Transfer Book”, said Eletrobras. The operation is within the scope of Eletrobras’ shareholding rationalization initiative, he added.
TC, formerly TradersClub, announced the acquisition of Abalustre for an estimated amount of R$6.7 million. The purchase was the company’s first since its initial public offering (IPO).
Latam Airlines ([ativo=LATM33])
Chile-based airline Latam Airlines said on Thursday it had received “several” offers to finance its exit from the US bankruptcy protection filing, with debts involving more than $5 billion.
The offers come from major creditors and shareholders of Latam, according to a document filed with the New York court and informed to the Chilean regulator.
Log announced its share buyback program with the objective of acquiring up to 5.5 million shares issued by the company.
Boa Vista Services (BOAS3)
Boa Vista Serviços Ilisório Schoneborn’s financial and investor relations director resigned from his position.
With the resignation, Mônica Freitas Guimarães Simão was elected to the positions then occupied by Schoneborn, in a term that will end on July 15, 2023.
Demonstrations by truck drivers blocking some federal roads this week are already translating into higher costs for Seara Alimentos, from JBS, which is beginning to see less availability of animal feed and a reduction in vehicles that transport food to the herds, the National manager said Thursday. of Grain Origination at Seara, Valdecir Martins, during a webinar promoted by the Abitrigo association. He also said that the main concern was sanitary, so that the animals do not lack food.
(with Reuters and Estadão Content)
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