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©Reuters. The Sao Paulo stock market falls 1.20% before the decision on rates in Brazil
Sao Paulo, Oct 25 (EFE).- The Sao Paulo stock market lost 1.20% this Tuesday and its index stood at 114,625 points, pending the decision of the Central Bank on the course of the basic rate of interest and in the midst of a tense electoral climate.
After falling more than 3% on Monday, the São Paulo market went against the grain from abroad and remained in negative territory, the day before the meeting in which the Brazilian issuer will decide whether to alter or maintain rates, which are currently at 13.75% per annum.
The fall in the index was also contributed to by uncertainty in the face of the close second round of the presidential elections this Sunday, in which the Brazilian president, Jair Bolsonaro, and former president Luiz Inácio Lula da Silva, favorite in the polls, will face each other. albeit by a narrow margin.
Electoral nervousness had a negative impact on state-owned companies, which closed with widespread losses.
The preferred papers of the oil company Petrobras (NYSE:) fell 1.66%% and were the most traded in the session, while those of the Banco do Brasil (BVMF:), the country’s largest financial institution, fell 1 .72%.
Losses, however, were led by meatpacking company BRF, which plunged 11.24% with investors wary of the company’s third-quarter results.
On the other hand, the titles that rose the most were the ordinary ones from the retail network Magazine Luiza, which climbed 5.15%.
During the day, 28,836 million reais (about 5,440 million dollars) were traded, as a result of 3,810,152 financial transactions.
In the foreign exchange market, the dollar appreciated 0.38% against the real and was traded at 5.321 reais for purchase and 5.322 reais for sale at the commercial exchange rate.
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