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© Reuters. The Sao Paulo Stock Exchange rises 1.28% weekly despite doubts about the fiscal agenda
Sao Paulo, Nov 5 (.) .- The Sao Paulo Stock Exchange rose 1.37% this Friday and closed with a weekly rise of 1.28%, despite the turbulence generated by the growing doubts about the agenda Brazilian government prosecutor.
The benchmark stock index, closed with 104,824 points, in a shorter week – Tuesday was a national holiday – marked by caution and in which it finally managed to finish in the green in three of the four sessions.
However, on Thursday it registered a sharp fall of 2.09%, amid discussions in Congress to approve a series of measures with which the Government intends to expand a subsidy program for the poorest families in 2022, year in the one who will try his re-election.
To finance it, the Government intends to make its fiscal responsibility commitments more flexible, by increasing the spending ceiling and postponing the payment of part of the State’s judicial debts, which is being analyzed in Congress.
These maneuvers, which have yet to be analyzed in a second vote by the deputies and immediately followed by the Senate, also in two rounds, already caused serious turbulence in the Brazilian markets last month.
Now the fear of the financial agents is the possible judicialization of the matter before the appeals presented in the Supreme Court by opposition parties for alleged irregularities in the first vote in the Lower House.
All in all, the Sao Paulo stock market added 1,412 units to its accumulated score.
The volume traded reached 31,431 million reais (about 5.7 billion dollars), according to preliminary results.
At the forefront of the gains in the Ibovespa were the shares of the oil company PetroRio, which soared 17.9% after reporting that negotiations are progressing to acquire assets from state-owned Petrobras (NYSE 🙂 that could double its production.
The department stores Magazine Luiza (12.3%) also climbed, as well as the Brazilian airlines Azul (8.3%) and Gol (8.2%).
On the other side of the coin, a bad day for the Brazilian steel and mining sector, with falls for Gerdau (-4.0%) and Vale (-3%).
The most traded securities were the preferred securities of Itaú-Unibanco, the largest private financial entity in the country (-1.2%), and the ordinary ones of Vale (-3%).
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