SAO PAULO (Reuters) – The Ibovespa closed higher on Monday, endorsed by Wall Street and driven by the performance of banks, on a day with BTG Pactual’s balance sheet, while BRF soared after Morgan Stanley raised its stock recommendation.
Reference index of the Brazilian stock market, the Ibovespa rose 0.87%, to 108,836.47 points. The financial volume totaled 18.9 billion reais.
In New York, the S&P 500 advanced 1.1%, in session with a decline in Treasury yields, which benefited technology stocks, among others, while Meta Platforms shares appreciated after news of new layoffs.
In the opinion of César Mikail, variable income manager at Western Asset, the Brazilian market “took a breath” supported by the US stock exchanges, which also experienced a relief.
“But the agenda continues to be inflation,” he said, drawing attention to the US consumer price index forecast for Tuesday, as doubts persist over the end of the cycle of high interest rates by the Federal Reserve.
Investors in the Brazilian market also remain attentive to discussions on the inflation target, with a meeting of the National Monetary Council (CMN) on Thursday’s radar, as well as an interview with the president of the Central Bank, Roberto Campos Neto.
The CMN meeting takes place amid news that the economic team is studying to anticipate a revision of the inflation targets, at a time when President Luiz Inácio Lula da Silva has been attacking the BC, criticizing, among other points, the level of the Selic .
Campos Neto, in turn, will give an interview to the program Roda Viva, on TV Cultura, this Monday. The recording was scheduled for late afternoon and will air from 10 pm.
“The noise continues on the government’s side, Central Bank autonomy, inflation target, tax… It is the reason why there is this discount, why the Ibovespa returned to a level close to 108 thousand points”, added Mikail.
The season for company balance sheets in Brazil also continues on the radar, with figures for Banco do Brasil, São Martinho, Carrefour Brasil, among others, scheduled for this Monday.
Strategists at BTG Pactual on Monday cut forecasts for 2023 on the results of Brazilian companies in 21 sectors that the bank covers, citing that the outlook for the country’s economy has “turned sour”.
HIGHLIGHTS
– BTG PACTUAL UNIT advanced 2.46%, to 21.26 reais, after reporting its results for the fourth quarter of last year, with a net profit of 1.64 billion reais, while analysts also drew attention positively to the prospects of the largest investment bank in Latin America for 2023. Like other banks, BTG also had its final performance affected by Americanas’ bankruptcy filing. However, it presented a more optimistic approach on the chances of recovering funds committed to the retailer.
– ITAÚ UNIBANCO PN appreciated 3.53%, to 26.71 reais, and BRADESCO PN gained 3.55%, to 13.12 reais, reinforcing the increase in the Ibovespa. BANCO DO BRASIL ON, which releases the results for the fourth quarter later this Monday, closed with an increase of 0.57%, at 40.6 reais.
– BRF ON rose 7.63%, to 6.91 reais, on the heels of a Morgan Stanley report raising the stock’s recommendation to “equal-weight”, citing that major structural and cyclical challenges remain, but that there is a transformation underway and that “it’s time to breathe”. Analysts also reiterated an “overweight” recommendation for JBS, Minerva and Marfrig shares.
– VALE ON yielded 0.1%, at 86.71 reais, amid the decline of iron ore futures contracts in Asia this Monday. Rising steel inventories and rising iron ore inventories at ports indicate a slow recovery in demand, even as the latest indicators point to a recovering economy. In the sector, CSN MINERAÇÃO ON lost 1.43%, at 4.83 reais.
– PETROBRAS PN ended with a positive variation of 0.3%, at 26.8 reais, as oil prices recovered and Brent, the benchmark used by the company, closed with an increase of 0.3%, at 86.61 dollars the barrel.
– AZUL PN retreated 4.31%, to 8.43 reais, against the backdrop of a cut in the credit rating by Fitch on Friday, citing “high refinancing risks” for the airline. This Monday, the Minister of Mines and Energy, Alexandre Silveira, met with the president of Petrobras and the Minister of Tourism to discuss measures that seek to reduce airfares in Brazil. GOL PN fell 1.59% to 6.19 reais.
– CARREFOUR BRASIL ON closed down 1.27%, at 14.04 reais, moving away from the lows of the session, before the release of the fourth quarter balance sheet. At the worst moment of the session, the stock reached 13.58 reais, the lowest intraday price since January last year.
(Reporting by Paula Arend Laier)
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