SAO PAULO (Reuters) – The main Brazilian stock index closed Monday’s volatile session on a slight low, as pessimism over China’s disappointing economic growth was partially offset by the positive influence of Wall Street with encouraging forecasts for quarterly corporate results.
After oscillating between the range of 112,800 and almost 115 thousand points, the Ibovespa closed the session with a negative variation of 0.19%, at 114,428.18 points. The day’s financial turnover totaled 29.6 billion reais.
Investors’ appetite for risk waned in the morning after China revealed that the economy grew 4.9% from July to September, lower than the 5.1% rate expected by analysts and slowing from the 7.9 rise % in the second quarter.
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Shares of Brazilian companies exporting commodities to that market, especially those linked to metals, were among the negative highlights in the session. And stocks that had been experiencing recovery, such as those linked to consumption, construction companies and the airline sector, were targets for profit taking.
On the other hand, securities from large financial institutions had a mostly positive session, with highlights for Banco do Brasil, Bradesco and Itaú Unibanco, being preferred purchase targets by foreign investors, according to market professionals.
The session was also marked by corporate announcements, such as the plans by Americanas and Lojas Americanas to anticipate a merger, and the debut of the shares of Getnet, the payment arm of Santander.
HIGHLIGHTS
– GPA fell 6.5%, dispersing part of the robust gains it had last Friday, after the announcement that it sold Hiper Extra stores to ASSAÍ, which lost 3.3%.
– CSN fell 4.1%, USIMINAS was down 3%, VALE lost 0.9%, with the domestic sector linked to metallic commodities more directly reflecting the market’s disappointment with China’s economic growth below expectations.
– HAPVIDA fell 3.15%, even after the hospital group announced on Friday night a buyback program of up to 100 million shares in 18 months.
– AMERICAN STORES jumped 20.7% and AMERICANAS rose 4.3%. The companies announced this morning that they are considering merging their operations ahead of a planned Nasdaq listing of the group. In a note to clients, Bradesco BBI assessed that the merger improves governance as it has only one class of shares and simplifies the structure, as Lojas Americanas will probably be terminated as a holding company.
-FLEURY gained 0.9%, after announcing that it agreed to buy smaller rival Marcelo Magalhães, from Pernambuco, in an operation valued at 384.5 million reais. In a statement, Credit Suisse considered the amount paid for the deal high, which will require significant synergies as compensation.
– GETNET soared 63.6% in the debut of the Santander payments company. The Santander Brasil unit increased by 0.36%.
– BANCO DO BRASIL grew 2%, BRADESCO appreciated 1.7% and ITAÚ UNIBANCO gained 0.7%, with large banks being preferred by foreign investors.
– EZTEC has shrunk 3%. The construction company announced on Friday night that it had 255 million reais in sales in the third quarter, down 23.6% year-on-year. BTG Pactual maintained a buy recommendation for the share, even admitting that the short-term scenario could be challenging.
– PETROBRAS PN yielded 0.5% and PETROBRAS ON had a positive oscillation of 0.13%, on a day of slight increase in the international prices of the barrel of oil, but after a weekend in which truck driver organizations once again threatened with a national strike protesting fuel prices.
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