After renewing its historical record in the morning (at 134,781.44 points), the Bovespa index lost steam in the afternoon to the point of falling below the 134,000-point level, but in a movement considered by traders as “natural” after eight consecutive trading sessions of appreciation. In the micro scenario, with a possible return to the monetary tightening cycle ahead, as indicated by the president of the Central Bank, Roberto Campos Neto, banks took advantage to take profits and the rising short Interbank Deposit (DI) rates put pressure on cyclical stocks, which are more sensitive to interest rates.
“After eight consecutive highs, the Ibovespa is reaching a region of some technical resistance, so it seems somewhat natural to see profit-taking in this scenario,” says Lucas Monteiro, Multimarket trader at Quantitas.
Today, investors closely followed Campos Neto’s comments at an event organized by Barclays. “We are not giving guidance, but we will do whatever is necessary to bring inflation to the target – and if raising interest rates is necessary, we will do so,” he said at the time.
THE Broadcast It also found that, in a meeting between the Central Bank and market economists this morning, professionals spoke of the need for an increase of up to 2 percentage points in the rate.
These factors caused part of the financial sector (the block with the greatest weight in the index) to take profits. According to Melver analyst Inácio Alvez, “a possible increase in interest rates, at the current levels they are at, could be bad for banks, as it limits and makes the supply of credit more expensive”. Thus, Bradesco ON (-1.62%) and PN (-1.25%), Itaú PN (-0.84%) and Unit of BTG Pactual (-0.33%) gave way, after having risen steadily in recent trading sessions, while Unit of Santander Brasil (+0.70%) and Banco do Brasil ON (+0.78%) remained in the blue.
The Ibovespa closed down 0.15% at 133,953.25 points, after renewing a historic record at 134,781.44 points (+0.47%) in the morning and touching an intraday low (-0.22%) at 133,852.67 points. The financial turnover was R$28.5 billion. The index closed the week up 2.56%, accumulating an appreciation of 4.94% in August, but still falling 0.17% in 2024.
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