© Reuters. The Sao Paulo Stock Exchange gains 2.78% in the week, with the dollar rising sharply
Sao Paulo, Dec 3 (.) .- The Sao Paulo Stock Exchange climbed 2.78% in a week in which it ignored that the Brazilian economy entered a “technical recession”, after falling 0.1% in the third quarter , while the dollar rose 1.57% against the real in the accumulated.
The index, the benchmark for the stock market, advanced 0.58% this Friday and closed with 105,069 points, after a high volatility session in which it suffered various ups and downs, although it finally ended in green.
The São Paulo ring avoided the pessimism of the international markets and continued on the path of profits, after scoring 3.66% the day before, which in the end has been decisive for the weekly result.
Even with many doubts about Brazil’s economic recovery, and even more so after chaining two quarters of negative growth and entering a “technical recession”, stock traders were relieved that the Government still has sufficient strength in Congress to approve their proposals .
The Senate approved this Thursday a constitutional amendment that makes the spending ceiling more flexible and postpones a part of the State’s judicial debts, with the aim of opening space in the budgets and increasing social assistance in 2022, the year in which the Government of Jair Bolsonaro will run for re-election.
These measures caused serious turbulence in the Brazilian financial market in recent weeks, but once the scare was digested, the operators feared that the Senate would knock them down and that this would increase uncertainty, which has not happened, for the moment, as they will have to be analyzed again by the deputies.
In the foreign exchange market, the US dollar appreciated 0.42% this Friday and closed at 5,681 reais for purchase and 5,682 for sale, at the Brazilian commercial exchange rate.
During the week, the greenback rose 1.57% against the Brazilian currency.
All in all, the Sao Paulo stock exchange today added 603 units to its accumulated score and reached a financial volume of 33,573 million reais (almost 6,000 million dollars), in a total of 4,609,840 financial operations.
Leading the gains on Ibovespa were the common shares of the discount coupon platform Méliuz, which soared 31% after breaking several records during ‘Black Friday’, it announced.
On the other side of the coin, a bad day for the meat sector, with falls for Marfrig (-5.7%) and JBS (-4.8%). The mining giant Vale also fell with losses of 2.2%.
The most traded securities were the preferred ones of the state-owned Petrobras (NYSE 🙂 (+1.4%) and the ordinary ones of Vale (-2.2%).