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© Reuters. The Sao Paulo stock market rises 1.98% after four days of losses
Sao Paulo, Nov 1 (EFE) .- The Sao Paulo stock market closed this Monday with a rise of 1.98% and its benchmark index at 105,550 points, after four consecutive days of losses and in one day adjustment in which some papers that had suffered exaggerated falls were appreciated, mainly those of banks.
Last week the main Latin American market suffered a fall of 2.63% with four days of red numbers, which caused that in October it accumulated a decrease of 6.7%, its worst monthly result in the year.
The pronounced weekly and monthly devaluation was due to the doubts that investors have about the economic policy of the Government of Jair Bolsonaro and his intention to relax fiscal rules in order to increase social spending in 2022, when the far-right leader aspires to be reelected.
The announcement by the Ministry of Economy that it may alter the rule that establishes a ceiling for public spending next year in order to be able to finance a huge program of distribution of subsidies to the poorest raises doubts about the Bolsonaro government’s commitment to fiscal austerity.
But after the volatility of the last sessions, the São Paulo market finally reacted this Monday – it registered a rise of 2.30% in the middle of the day – thanks to the rise in the price of papers that had been severely punished by investors and whose price had fallen dramatically.
This day of adjustment was led by the banks in a week in which the two largest private financial entities in the country, Itaú and Bradesco (SA :), are expected to report significant earnings in the third quarter.
The Ibovespa shares that rose the most today were the unitary shares of the Inter bank, with an appreciation of 19.18%, followed by the preferred shares of the same entity, with an advance of 18.40%.
The value of the papers of this virtual bank jumped after its main rival in Brazil, Nubank, gave details of the operation with which it intends to debut in December on the New York Stock Exchange and with which it would be born with a market value of close to 51,000 million dollars, above Itaú itself. The optimistic prospect released by Nubank led investors to revalue the main banks in the country.
The third shares that rose the most today were the ordinary ones of the Cogna publishing group, with a jump of 12.90%, after announcing that it had acquired Editorial Eleva.
In the generalized rise of Ibopespa, the advance of the stars of the São Paulo market contributed, such as those of the oil company Petrobras (NYSE 🙂 and the mining company Vale, which closed the day with increases after oscillating negatively last week.
The most traded shares of the day were Petrobras preferred shares, which rose 2.75%, followed by Vale’s common shares (+0.99%), Petrobras common shares (+3.72) and the bank’s unitary shares. Itaú (+ 3.97%).
The volume traded this Monday on the São Paulo stock market reached 27,991.6 million reais (about 4,936.8 million dollars) in a total of 4,563,959 financial operations.
In the exchange market, the dollar closed this Monday with an appreciation of 0.49% in Brazil, priced at 5,668 reais for purchase and 5,670 reais for sale at the commercial exchange rate.
