By Brazil Stock Guide – The fortune of banker André Esteves, the largest shareholder of BTG Pactual (BPAC11), increased by $2.7 billion on Monday, Oct. 5, a 20% jump in a single day, according to Bloomberg. The gain lifted his estimated net worth to $15.8 billion and made him Brazil’s third-richest person.
The increase came as Brazilian financial assets surged following the first round of the presidential election, with investors reacting positively to the stronger-than-expected performance of the right.
BTG Pactual units jumped 22.52% to R$80.89 in the session, placing the bank among the biggest gainers on the Ibovespa.
The rally extended across Brazilian assets. The Ibovespa rose 7.70% to 206,911.89 points, closing above 206,000 for the first time. The benchmark reached an intraday record of 209,605.70 points.
Trading volume on B3 (B3SA3) reached R$103.3 billion, while the US dollar fell 4.12% against the Brazilian currency and ended the session near R$5.
Post-election rally
Senator Flávio Bolsonaro (PL-RJ) finished first in the opening round of Brazil’s presidential election with 47.03% of valid votes, or 56.1 million ballots.
President Luiz Inácio Lula da Silva (PT), who is seeking reelection, received 45.16%, or 53.9 million votes.
Neither candidate secured more than half of valid votes, sending Bolsonaro and Lula to a runoff scheduled for Oct. 25. The two were separated by about 2.2 million votes.
Domestic stocks and companies exposed to Brazil’s capital markets were among the biggest beneficiaries of the market reaction. Alongside BTG’s 22.52% advance, B3 shares (B3SA3) gained 22.63%.
Magazine Luiza (MGLU3) and Cosan (CSAN3) were also among stocks highlighted during the session’s broad rally.
The sharp increase in Esteves’ wealth reflected the appreciation of BTG Pactual, where he is the largest shareholder. The $2.7 billion one-day gain increased his estimated fortune by roughly one-fifth, taking it to $15.8 billion.
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