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By Paula Arend Laier
SAO PAULO (Reuters) – The Ibovespa moved away from the lows and was operating close to stability in the early afternoon of this Monday, with Eletrobras among the main supports, as well as the improvement of Petrobras, while Vale was still a relevant negative counterweight in the wake. worse-than-expected data from the Chinese economy.
At 12:35, the Ibovespa was stable at 112,769.79 points, moving away from the worst moment recorded earlier, when it dropped 1.5%, to 111,066.52 points. The financial volume totaled 12.8 billion reais.
The drop comes after the main index of the São Paulo stock exchange advanced 5.91% last week – the fourth consecutive increase and biggest weekly gain since November 2020.
On Monday, China was undermining sentiment in trading sessions after data showed the economy unexpectedly slowed in July, with industrial and retail activities suffering from Covid zero policy and a housing crisis.
Just before the figures were released, the Chinese central bank cut key lending rates in an unexpected move on Monday.
On Wall Street, the S&P 500 was down 0.1%.
From a technical point of view, analysts at Itaú BBA stated that the Ibovespa is in a region that could be a watershed in the medium-term trend. “If it manages to firm up above 113 thousand points, the chances of resuming the rise towards the historic maximum increase”, they wrote in a report to clients.
On the other hand, they estimate that a profit taking, if it happens, would not change the current uptrend.
– VALE ON lost 2.58% at 68 reais, pressured by Chinese news, which made iron ore futures contracts fall on the Dalian and Singapore exchanges. The mining and steel sector suffered as a whole in this session, with CSN ON down 4.55%. The company releases its second quarter balance on Monday.
– ELETROBRAS ON advanced 3.18%, at 48.39 reais, even after reporting a net income of 1.4 billion reais in the second quarter, down 45% from the same period of the previous year, “mainly” due to the effects of negative exchange variation of 625 million reais due to the exposure of the company’s dollar-denominated debt. Adjusted Ebitda, however, grew by 6%.
– PETROBRAS PN rose 0.76%, at 31.95 reais, renewing its historic intraday high to the maximum so far, at 32.15 reais. Earlier, the paper fell nearly 3.7%, amid profit-taking movements after a sharp rise last week and on the back of the drop in oil abroad. The company announced this Monday cut in the price of gasoline.
– IRB BRASIL RE ON showed a drop of 6.93%, at 2.15 reais, amid concerns about the conditions of a potential offering of shares that the reinsurer said it is evaluating to raise funds. At the worst moment, at the opening, it fell by almost 15%, at 1.97 reais. The IRB will also release a balance sheet after the market closes.
– MAGAZINE LUIZA ON rose 11.73%, at 4 reais, continuing the strong advance of Friday, with the e-commerce sector among the highest highs – AMERICANAS ON advanced 12.96% and VIA ON had an increase of 10 .38%. Against the background, in addition to the prospect that the monetary tightening in Brazil may have ended or is nearing an end, the IBC-Br, a GDP indicator in Brazil, grew more than expected in June.
– MÉLIUZ ON appreciated 11.94%, at 1.5 reais, also expanding the rise since Friday, a few hours after the release of the second quarter results, scheduled for after the market closes. The paper, as well as LOCAWEB ON, which rose 6.14%, is among those benefiting from the prospect of closing the Selic high cycle.
– ITAÚ UNIBANCO PN rose 0.22%, at 26.8 reais, while BRADESCO PN was down 0.82%, at 19.37 reais.
– M. DIAS BRANCO ON soared 19.8%, at 39.15 reais, the best performance of Small Caps after the leading company in the biscuit and pasta markets in Brazil reported a quarterly performance above market expectations, more than doubling the result operational. Analysts revised estimates and raised target prices. JPMorgan also improved its stock recommendation to ‘neutral’.
(Edited by André Romani)
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