By Brazil Stock Guide – Brazil’s Ibovespa opened Monday with modest gains, lifted by a sharp move in GPA (PCAR3.SA) after the Coelho Diniz family boosted its stake and called for a board overhaul. The market tone also reflected growing bets on US monetary easing. The figures and company moves were first reported by Reuters.
Around 11:00 a.m. in São Paulo, the benchmark stock gauge rose 0.22% to 138,278 points, with turnover near R$2.45 billion, according to Reuters. Analysts at BB Investimentos said Jerome Powell’s recent remarks flagged the possibility of rate cuts as the US labor market cools, even as inflation remains sticky. In a client note, they wrote that if a policy path consensus builds, the Ibovespa could “retest its record near 141,500,” but must first clear 139,300, with initial supports around 136,000 and 134,300.
Movers
GPA (PCAR3.SA) +5.6% — The Coelho Diniz family lifted its holding to almost 25% and requested an extraordinary shareholders’ meeting to remove the entire board and elect new directors. GPA said it will take the required steps to convene the meeting within the legal window.
Eneva (ENEV3.SA) +4.2% — Shares advanced after the Brazilian government moved to open consultations for two power-capacity auctions that will admit coal-, oil- and gas-fired plants and expansions of hydropower. The public consultation is slated to run 20 days, with the auctions targeted for March next year, according to the Ministry of Mines and Energy.
RD Saúde / Raia Drogasil (RADL3.SA) −2.8% — The stock eased after three straight gains totaling 7.6%. Banco Safra raised its view to “outperform” and lifted the price target to R$23 from R$17, citing a stronger-than-expected second quarter and margin improvement.
Vale (VALE3.SA; VALE) +0.8% — Benefited from iron ore futures in Dalian rising 2.27% to 787 yuan (US$110.06) per ton, the highest since Aug. 14.
Petrobras PN (PETR4.SA) +0.2% — Tracked crude higher, with Brent up 1.15% to US$68.51. Petrobras said it began an anticipated emergency drill in the Foz do Amazonas Basin on Sunday. Among peers, PetroRecôncavo (RECV3.SA) +1.9% and PRIO (PRIO3.SA) +0.9% advanced. (Reuters also cited “BRAVA ON” among gainers in the sector.)
Banks — Banco do Brasil (BBAS3.SA) −0.9% eased after Friday’s 4.1% jump amid lingering concerns over potential spillovers from US sanctions and Supreme Court moves following a soft 2Q print. Itaú Unibanco PN (ITUB4.SA) −0.5%, Bradesco PN (BBDC4.SA) −0.3%, while Santander Brasil Units (SANB11.SA) +0.4%.
Global backdrop
US equities opened mixed after last week’s rally: the S&P 500 slipped 0.16% after a 1.5% gain on Friday, when Powell suggested a rate cut could be on the table at the next Fed meeting, Reuters reported.
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