© Reuters. The Sao Paulo Stock Exchange falls 2.9% in March and accumulates two months in red
(Fixes title percentage)
Sao Paulo, Mar 31 (EFE).- The Sao Paulo stock market fell 1.77% this Friday, almost the same as it had gained the day before (1.85%), and ended the green streak with which It had been coming since last Friday, impacted by the tax regime project with which the Brazilian Government seeks to adjust public accounts.
The , the main reference of the largest Latin American market, closed the day at 101,882 points, with which it accumulated a depreciation of 2.9% in March, the second consecutive monthly drop after the losses registered in February (-7.49%).
The tax regime proposal, which was received with confidence by investors yesterday, today raised doubts in the market regarding the way in which the Government of Luiz Inácio Lula da Silva intends to achieve the goals indicated in the new regulations.
The fiscal project, which still has to be approved by Congress, allows raising public spending above inflation but limits this increase to 70% of the variation in primary fiscal revenue in the last year.
Investors are wondering how the government is going to reach the surplus goals proposed in the plan if the increase in revenue does not turn out as expected and if an increase in taxes is not made, as pointed out by Economy Minister Fernando Haddad.
The news was also felt in the exchange market. The dollar depreciated 0.57% and ended the trading day at 5.068 reais for both buying and selling at the commercial exchange rate.
In the month, the US currency accumulated a fall of 2.98%.
The day was also pressured by the great values of the São Paulo group whose shares were among the most traded of the day, but with losses.
The common shares of the mining company Vale depreciated 1.87% and the preferred shares of the oil company Petrobras (NYSE:) fell 2.17%.
As for the largest gains, the list was headed by the infrastructure and highway concessionaire CCR, whose common shares appreciated 2.81%. It was followed by the educational company Cogna, with gains of 2.75% in its ordinary titles.
On the opposite side were the ordinary papers of the construction company MRV (-7.13%) and the similar ones of the Soma Group of the fashion sector (-7.00%).
The volume negotiated by the São Paulo stock market was more than 26,597 million reais (about 5,245 million dollars) in more than 3.7 million operations.