Ibovespa closes above 120 thousand points and has the best performance in 7 months; dollar falls again

The Brazilian stock exchange followed the optimism abroad and closed above 120 thousand, with the reduction of tensions between Russia and Ukraine, after the first face-to-face negotiations by officials from both countries in more than two weeks showed signs of progress. Russia has pledged to drastically reduce its military operations around Kiev, while Ukraine has proposed a neutral status with international guarantees.

The upward movement was also driven by increases in Petrobras common and preferred shares (PETR3;PETR4), of 1.09% and 2.47%, respectively, despite the drop in oil. The appreciation comes after the appointment of Adriano Pires to the presidency of the company, replacing General Joaquim Silva e Luna, with the perception that there will be no major changes in the company’s management.

The Ibovespa closed up 1.07%, to 120,014 points this Tuesday (29), the highest level since August 27 of last year, after oscillating between 118,739 and 120,900 points. The financial volume was R$ 35.8 billion.

The positive highlights were Via shares (VIIA3), which rose 8.63%, followed by Americanas (AMER3) and Magalu (MGLU3), with gains of 8.42% and 8.19%, respectively.

According to analysts at Ativa Investimentos, the retail sector is advancing with the fall in the yield curve, after probable attenuation of the conflict in Eastern Europe.

Cyrela (CYRE3) and Bradespar (BRAP4) were the negative highlights of the session, falling by 2.91% and 2.14%, respectively, followed by Gerdau (GGBR4), which fell by 2.02%. The steel and mining sectors have been affected by the new lockdown taxes in China.

The spot dollar reversed part of yesterday’s high and fell 0.31% to R$4.757, after fluctuating between R$4.717 and R$4.784.

At the aftermarket, at 5:12 pm, the yield curve declines en bloc: DIF23, -0.24 pp, to 12.70%; DIF25, -0.92 pp, at 11.30%; DIF27, -0.53 pp, at 11.20%; DIF29, -0.52 pp, at 11.38%.

On Wall Street, growing hopes of a ceasefire between Russians and Ukrainians helped US stocks close on the positive side.

The Dow Jones index rose 0.97% to 35,294 points. The S&P 500 rose 1.23% to 4,631 points, while the Nasdaq rose 1.84% to 14,619 points.

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