By Brazil Stock Guide – The Ibovespa surged 1.04% on Wednesday, closing at 139,205.81 points, the highest level seen this month. This marks the first time the index has surpassed the 139,000-point threshold in August. Bank stocks were the primary drivers of this upward movement, with Itaú Unibanco (ITUB3) and Banco do Brasil (BBAS3) standing out as top performers. Additionally, Braskem (BRKM5) saw a strong 5.79% gain, continuing its bullish streak.
The positive sentiment on the São Paulo Stock Exchange was further bolstered by Wall Street’s performance. The S&P 500 rose by 0.24%, driven by anticipation surrounding Nvidia’s (NVDA) earnings results, released after U.S. markets closed. The Nasdaq and Dow Jones also posted gains, up 0.21% and 0.32%, respectively.
Analysts at Itaú BBA highlighted that the international market outlook suggests a potential continuation of the current upward trend, which could have a positive impact on the Ibovespa. This trend was observed during last Friday’s session as well. However, they cautioned that any improvement in the Ibovespa may not be entirely linear or consistent.
Economic data released on the day showed mixed signals for the Brazilian economy. The Central Bank’s credit data revealed a 1.2% increase in credit concessions in July compared to June, but also noted a rise in delinquency rates, reaching their highest level in nearly eight years. Meanwhile, the Caged employment report showed that Brazil added 129,775 formal jobs in July, the lowest increase for the month in five years.
In terms of sector-specific movements, Itaú Unibanco (ITUB3) gained 1.68%, recovering from early session weakness. Banco do Brasil (BBAS3) climbed 1.23%, while Bradesco (BBDC3) rose by 0.74%. Other notable gains came from Petrobras (PETR3), which ended the day up 0.76% in line with rising oil prices.
Braskem’s (BRKM5) gains were noteworthy, marking its sixth consecutive rise. The petrochemical company has been in the spotlight due to developments surrounding its shareholder negotiations, including the end of exclusivity in talks between businessman Nelson Tanure and Novonor, as well as a deal between IG4 and the company’s creditors for exclusive negotiations.
Steel stocks also saw mixed performance. Vale (VALE3) ended the day slightly lower, down 0.05%, with futures for iron ore in China seeing a decline. Meanwhile, CSN (CSNA3) and Usiminas (USIM5) posted gains, while Gerdau (GGBR4) saw a slight decrease of 0.12%.
Source: Reuters
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