SAO PAULO (Reuters) – Brazil’s main stock index retreated sharply on Friday, after reversing mid-afternoon gains as stocks tumbled on Wall Street, and closed its worst month since the initial period of the pandemic in the country.
Steel companies and companies linked to consumption, such as Magazine Luiza and Locaweb, yielded, while oil companies and shopping mall operators, amidst the industry news, rose.
The Ibovespa fell 1.86%, to 107,876.16 points, for the lowest closing since January 18. The financial volume of the session was 34.5 billion reais.
The index fell 2.9% for the week, the fourth straight weekly low, and ended the month down 10.1%, after four months of highs. The April devaluation was the biggest since March 2020, when the index lost 29.9%.
“This month was better for commodities. Growth assets and domestic consumption followed statements by members of the Fed (Federal Reserve, US central bank) about monetary tightening and foreign flows also left the stock market”, said Rodrigo Crespi, from Guide Investimentos.
On Wall Street, the S&P 500 and the Dow Jones also had their worst monthly performance since March 2020, while the Nasdaq had its worst month since October 2008 in April. balance sheet and US inflation data.
The Ibovespa rose by around 1.7% at the highest of the day.
HIGHLIGHTS OF THE MONTH
– LOCAWEB ON lost 29% in April, the biggest drop of the Ibovespa in the month, in the face of a complicated macroeconomic scenario for the technology and online retail sector, with high interest rates in the US punishing growth actions.
– VIA ON dropped 28.8%, the second biggest drop in the Ibovespa index in the month, as retailers continue to be pressured by the scenario of high inflation, high interest rates and competition, in addition to the effects of the monetary tightening in the US. MAGAZINE LUIZA ON dropped 28.5% and was the third worst performer.
– PETRORIO ON rose 12.1% in April and was the best performing stock on the Ibovespa. The paper gained traction at the end of the month, helped by the acquisition of 90% of the Albacora Leste field, from Petrobras, in the Campos Basin, for 2.2 billion dollars. The purchase could take the company to another level of production, Citi analysts wrote. Brent advanced 1.3% in April and also had an influence on the asset’s performance.
– CPFL ON rose 12% and took the second position in the index for the month.
SESSION HIGHLIGHTS
– INTER UNIT lost 7.2%, LOCAWEB ON lost 6.2% and CIELO ON dropped 5.8%. BTG PACTUAL UNIT showed a decrease of 4.3%.
– PETROBRAS PN rose 0.1% losing traction later in the day. Oil had a volatile session in view of the proximity of contracts expiration. PETRORIO ON rose 1.6% after Credit Suisse raised its share’s target price, and 3R PETROLEUM ON gained 2.7%.
– VALE ON decreased 1.1%, following the worsening of the market, after rising earlier with a jump of more than 4% in iron ore contracts in Dalian, with China promising to intensify measures to stabilize the economy. Among steelmakers, GERDAU PN shrank 3.7%.
– MULTIPLAN ON appreciated 4%, after a 270.5% jump in net income in the first quarter compared to the previous year. The company will maintain its conservative strategy for mergers and acquisitions, betting on expanding its own portfolio, executives said in a conference call.
– BR MALLS ON expanded 1%, after its board of directors recommended approval of the sale of the company to rival ALIANSCE SONAE, which fell by 0.1%. Aliansce is not part of the Ibovespa.
– ITAÚ UNIBANCO PN depreciated by 1.8%, as banks reversed the opening that had been positive despite the increase in the CSLL rate on the sector.
To see the biggest drops in the Ibovespa, click on
To see the highest Ibovespa highs, click on
(By Andre Romani)
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