© Reuters. The Sao Paulo Stock Exchange adds its fourth consecutive fall by yielding 0.51%
Sao Paulo, Nov 18 (.) .- The Sao Paulo Stock Exchange fell 0.51% this Thursday and added its fourth consecutive session in negative, amid a climate of caution before the parliamentary process of the fiscal maneuvers of the Brazilian Government to increase social spending in the election year.
The index, the benchmark for the stock market, closed with 102,426 points, after losing 522 units in a session in which the steel and mining sectors were among the most affected.
Pessimism has taken hold of the São Paulo circle, which has already been in red for four days: -1.17% on Friday, -1.82% on Tuesday -Monday was a national holiday-, -1.39% on Wednesday and -0 , 51% this Thursday.
So far this year, the Brazilian market has accumulated a drop of 14%.
With advanced vaccination against covid-19, the turbulences of recent months are related to the drift in the fiscal agenda of the country, which suffers from a chronic public deficit that was aggravated by the coronavirus pandemic.
In this fragile context, the Government of Jair Bolsonaro announced a series of measures to increase the spending ceiling and postpone a part of the State’s judicial debts, with the aim of increasing social assistance in 2022, the year in which he will seek his re-election. .
The Chamber of Deputies endorsed these maneuvers, but now the Senate is missing, where the Executive is meeting more resistance.
In addition, President Bolsonaro has hinted at a possible salary increase for “all” officials, if these measures are ratified by Parliament, although the head of the Lower House, Deputy Arthur Lira, stressed that there is no more space in the budget to charge that increment.
In the foreign exchange market, the US dollar appreciated today by 0.80% and closed at 5.57 reais for buying and selling, at the Brazilian commercial exchange rate.
In Ibovespa, the volume traded reached 28,412 million reais (5,100 million dollars), in a total of 4,142,273 financial operations, according to preliminary results.
Among the biggest drops were values from the steel and mining sectors, with sharp falls for Usiminas (-5.7%), Compañía Siderúrgica Nacional (-5.3%) and the giant Vale (-4.1%).
On the contrary, the ordinary titles of the Meliuz discount coupon platform were at the fore of the gains, which shot up 10.2%.
The most traded papers were the ordinary ones of Vale (-4.1%) and the preferred ones of the state-owned Petrobras (NYSE 🙂 (-0.15%).