Why Magazine Luiza (MGLU3) rose 8% and led the Ibovespa highs; Time to buy? – Money Times

Magazine Luiza
According to Victor Paganini, an analyst at Quantzed, the stock rose driven by the cooling of interest rates (Image: Money Times/Renan Dantas)

After 10 sessions in the red, the role of the Magazine Luiza (MGLU3) rose and led the highs of the Ibovespa (IBOV), with an increase of 8.4%, to R$ 2.58. in the session, the index closed practically stable.

Still, its shares are heading for the worst quarterly performance since IPOaccumulating since the beginning of April until the moment a loss of more than 60%.

According to Victor Paganini, an analyst at Quantzed, the role rose pulled by the cooling of interest.

“Interests gave this relief today. We know that relieving interest directly benefits this sector of e-commerce. And we had the futures in United States helping too. The role had already been falling in recent weeks ”, she puts.

Despite this, Paganini says this does not mean a buying opportunity.

“The scenario is very challenging. We have macroeconomic problems, which will put pressure on the inflation on account of fees. It is a sector that tends to be in the eye of the hurricane,” she argues.

On Saturday, XP Investimentos reiterated its neutrality for Magazine Luiza shares.

We still don’t recommend buying the papers of e-commerce as we expect a very challenging macro dynamic ahead, both from the point of view of inflation and interest rates”, he says.

For the broker, recent movements in amazon (AMZN) and shopee add risk to the competitive landscape of the sector, “since both companies are highly capitalized, have global expertise and have focused on the marketplace platform”.

Another sector that performed well were the banks, with Itau (ITUB4) rising 4.35%, Bradesco (BBDC4) 2.65% and Itaúsa (ITSA4) 3.13%.

biggest drops

already the nature (NTCO3) fell 7.61% to R$13.25. In Paganini’s view, the market is returning the company’s earnings after the CEO change.

“What prevailed was the economic scenario, which has contributed to these assets performing poorly”.

For him, the fall is not a buying opportunity.

“It is a sector that suffers a lot with this bad macroeconomic and inflationary pressure. We have more potential rate hikes for the FOMC. Stocks should continue in downtrends”, he adds.

See the biggest drops in the Ibovespa

CompanytickerFall
natureNTCO37.60%
Sugar LoafPCAR46.54%
TotvsTOTS34.69%
hapvidaHAPV34.88%
SumSUM33.65%

See the biggest highs of the Ibovespa

CompanytickerHigh
Magazine LuizaMGLU38.40%
WEGWEGE35.56%
ItauITUB44.35%
ItaúsaITSA33.13%
BradescoBBDC42.65%

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Disclaimer
O Money Times publishes informative articles of a journalistic nature. This publication does not constitute investment advice.

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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