By Paula Arend Laier
SAO PAULO (Reuters) – The Ibovespa closed down on Tuesday, with a strong retreat from Petrobras in the wake of the fall in oil abroad, while retailers showed a significant reaction, with Magazine Luiza shooting up almost 12%.
Reference index of the Brazilian stock market, the Ibovespa fell 0.32%, to 98,294.64 points, after reaching 96,499.42 points at the worst moment, renewing an intraday low since November 2020.
The financial volume on the trading floor totaled 23.1 billion reais.
The Ibovespa improvement was endorsed by Wall St, where the S&P 500 closed in the black after falling more than 2% at the worst moment, when worries about the risk of recession in the United States and in the world prevailed. The Nasdaq advanced 1.75%.
In the view of Manchester Investimentos partner Eduardo Cubas Pereira, the sharpest drop at the beginning of the trading session on B3 was exaggerated, since there was no relevant news in this session that could explain the stronger sales.
He considered, however, that there are still concerns about raising interest rates globally, as well as the possible risk of recession and stagflation, in addition to the political discussions in Brazil, particularly the PEC of Benefits, because of the fiscal risk.
HIGHLIGHTS
– PETROBRAS ON and PETROBRAS PN lost 4.27% and 3.81%, respectively, affected by the tumble of about 9% of oil this Tuesday, the biggest daily drop since March, on growing fears of a global recession and lockdowns in China that can reduce demand. In the sector, 3R PETROLEUM ON lost 7.44% and PETRORIO ON dropped 7.11%.
– MAGAZINE LUIZA ON jumped 11.74%, reacting after having renewed an intraday low since December 2017, at 2.03 reais, in a general movement in the sector. VIA ON soared 11.48% and AMERICANAS ON advanced 9.73%. Operators cited as support from technical adjustment to expectations of more money in the economy with the PEC of Benefits.
– PETZ ON advanced 8.65%, at 10.43 reais, after reaching a historic intraday low of 9.42 reais. Goldman Sachs analysts began covering the company with a “buy” recommendation and a target price of 16 reais.
– VALE ON lost just 0.5%, on a day ahead of iron ore futures contracts on the Dalian exchange, with the market rising for the first time in four sessions on expectations of lower US tariffs on Chinese products. In the sector, CSN MINERAÇÃO ON showed a decline of 2.16%.
– BRF ON appreciated 7.67%, supported by a report by analysts from BTG Pactual, who raised the target price of shares to 20 reais, from 17 reais previously, as well as evaluating that the company’s short-term performance may surprise on the positive side. Even so, analysts Thiago Duarte and Henrique Brustolin reiterated a ‘neutral’ recommendation.
– SUZANO ON fell 2.92% and KLABIN lost 1.93%, in a falling session for stocks linked to commodities on B3.
(Edited by André Romani)
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