Ibovespa rises 2% and loses the week on IPCA day and payroll By Reuters


© Reuters. REUTERS/Paulo Whitaker

By Paula Arend Laier

SAO PAULO (Reuters) – The advance of 2% this Friday and practically zero accumulated losses for the week, reaching the maximum of 114,000 points, amid relevant technical adjustments and after figures on inflation in Brazil and employment in the U.S.

Reference index of the Brazilian stock market, the Ibovespa closed with an increase of 2.03%, to 112,833.20 points, accumulating a negative variation of 0.06% in the week, after registering a loss of more than 2% until the day before. The financial volume this Friday totaled 34.8 billion reais.

The last trading session of the week found support particularly in the easing of future interest rates, after the lower than expected in September – although still at high levels. The rate in 12 months exceeded 10% for the first time since 2016.

According to the investment director at BS2 Asset, Mauro Orefice, the data fueled perceptions in the market that the worst of the IPCA may be over, and that inflation may start to show a more well-behaved trajectory.

At the same time, the external agenda on Friday brought a number over last month in the US also lower than analysts’ forecasts, despite an upward revision in the August data and a fall in .

The data, according to the investment director at Reach Capital, Ricardo Campos, indicate that the Federal Reserve should not accelerate the ‘tapering’ (reduction of stimulus), which is good for Brazil in general.

Endorsing the premise, Western Asset Equity Manager Cesar Mikail added that the numbers suggest that the US economy is not so buoyant and raise doubts as to when the Fed will begin to reduce stimulus.

He also called attention to the start of the US corporate earnings season next week, which if positive expectations are confirmed will be another positive component for the markets.

On Wall Street, the closed the day with a negative variation of 0.19%, but accumulated in the week an increase of 0.79%.

In the view of the member of the equity investment committee and partner at Occam Pedro Menezes, the rise in B3 (SA:) reflected a more technical movement, with mainly local uncertainties – which have been pressuring the stock exchange in recent months – still on the radar.

Despite accumulating an increase of about 1.7% in these first sessions of October, the Ibovespa has been falling for three consecutive months (-3.9% in July, -2.5% in August and -6.6% in September). In the year, it now accounts for a decrease of 5.2%.

HIGHLIGHTS

– MAGAZINE LUIZA ON (SA:) soared 6.7%, seeking support in the climate of more buyers on the stock market to recover part of the losses that accumulated in the year and still amount to almost 40%. In the sector, AMERICANAS ON (SA:) rose 5.8% and VIA ON (SA:) closed with an increase of 3.47%.

– VALE ON (SA:) rose 0.62%, after Dalian, China, reached a one-month high, with market participants optimistic about the prospects for demand for the material from the world’s largest steel producer. In the sector, PNA USIMINES (SA:) was the highlight with an increase of 4.95%.

PETROBRAS PN (SA:) appreciated by 1.82%, following the rise in the foreign market. The company also announced that it will take the average price of gasoline and cooking gas at refineries by 7.2% from Saturday, reflecting the advance of oil abroad and the strengthening of the .

– ITAÚ UNIBANCO PN (SA:) and BRADESCO (SA:) rose 0.74% and 0.68%, respectively, with the highlight in the sector on the Ibovespa being BANCO INTER UNIT (SA:) – which rose 7.41% .

– CIELO ON (SA:) jumped 14.29%, with agents pegging the performance to the reduction of premiums in the yield curve and ‘short squeeze’, after the share renewed its intraday historical low last Wednesday, at 2.23 real. In 2021, the stock still accumulates a decline of more than 30%.

– GPA (SA:) ON fell 1.6%, among the few drops in the Ibovespa in the session, after Cnova, a company in which it holds a 34% stake, postponed a plan to raise capital and stated that it could no longer confirm guidance by challenging business conditions in the third quarter.

(Alberto Alerigi Jr. Edition)