Ibovespa rises attentive to Budget; options expiration day By Reuters

© Reuters.


By Andre Romani

SAO PAULO (Reuters) – The main index of the Brazilian stock exchange sought to firm new high on Friday, the fourth consecutive, amid another negative trading session for shares in New York.

The session is marked by the expiration of stock options on B3 (SA:), in addition to expiration on Wall Street, which can bring greater volatility.

The recovery of bank shares from the previous drop helped the local index, as well as retailers, who extended recent highs. Commodity exporters operated in the negative.

At 11:46, it was up 0.4% to 109,535.32 points after trading earlier in win-loss. The index was heading for a second week of highs. The financial volume of the session was 7.3 billion reais.

The Ibovespa maintained a performance superior to that of the three main Wall Street indices seen recently. may close its fourth session and third consecutive week on the negative.

The local market was waiting for the sanction of the 2022 Budget by President Jair Bolsonaro, whose deadline expires this Friday, with an eye on the potential inclusion of salary readjustments to categories of civil servants.

The president has given mixed signals on the matter in recent weeks and has kept the agenda open.

The National Congress reserved in the approved 2022 Budget an increase for three categories of federal public security, but the text needs Bolsonaro’s sanction to be effective. Other categories of civil servants, such as Central Bank servants, mobilized this week in pressure to be included in the potential readjustments.

Stock indices in the US fell shortly after the opening, with investors keeping the country’s monetary policy on the radar, as the US central bank’s next meeting on the matter takes place next week. The market expects signs of an interest rate hike in the country as early as March.

Netflix (NASDAQ:) (SA:) shares plummeted after the company released forecasts that disappointed investors.

In Europe, the pan-European index retreated in the morning, possibly registering the third consecutive weekly decline.


– Via SA (SA:) ON increased 6.7%, Magalu (SA:) increased 5.4% and Americanas SA (SA:) and Lojas Americanas PN (SA:) increased 2.6% and 2.8%, respectively. The four shares gained for the third consecutive session.

– Itau PN (SA:) was up 0.5%, Bradesco PN (SA:) was up 0.1%, Santander Unit (SA:) was up 2.4% and Banco do Brasil (SA:) was up 0.7 %, after the sector had a negative performance the day before.

– Vale ON (SA:) was down 0.8%, even after a new high in China, which rose 3% in Dalian and registered a third consecutive weekly gain. Steel companies also fell, with Gerdau PN (SA:) falling 2.2% and USIMINAS PN (SA:) down 1.5%. New monetary stimulus fueled expectations of stronger demand, but international steel prices remain limited by production cuts at mills abroad.

– Petrobras PN (SA:) rose 0.3% and ON advanced 0.4%, while Petro Rio SA (SA:) dropped 1.6%. Oil prices extended the previous day’s drop, after touching the highest level in seven years earlier this week. The commodity is pressured by profit taking and rising US inventories.

– CVC ON (SA:) reversed initial losses and rose 0.2%, after a rise in bookings in the fourth quarter, but the company pointed to a slowdown in December due to the Ômicron variant of Covid-19. The stock soared more than 10% the day before, its highest since March 2021.

– Eletrobras ON (SA:) and PN rose 1.9% each, after the company called a shareholders’ meeting to resolve on privatization.

– Hapvida ON (SA:) rose 3.6% and Notre Dame Intermedica (SA:) ON advanced 3.1%, after Intermédica announced 1 billion reais in extraordinary dividends, conditioned to the closing of the transaction between the two companies, the which should take place on February 11th. The combined company’s share debuts on the 14th of the same month.

– Lojas Renner ON (SA:) rose 1.5% after the company approved a buyback program for up to 18 million shares and announced Daniel Martins dos Santos as the new CFO.

– Alliar (SA:) ON, which is not listed on the Ibovespa, fell 3.6%. The General Superintendence of the Administrative Council for Economic Defense (Cade) approved the sale of shares by its controlling shareholders to a fund linked to businessman Nelson Tanure.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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