Ibovespa Slightly Falls Amid Position Adjustment

(Agencia CMA Latam) – After trading higher during the day, the Ibovespa lost strength and closed slightly down (-0.16%) Tuesday at 74,318.72 points, with investors adjusting positions in shares such as Petrobras and tracking the U.S. Stock markets. As a result, the benchmark stock index in Brazil fell for the fourth session in a row, remaining below 75,000 points.

“Investors tried to gain with Vale and steelmakers, but Petrobras and Ambev accelerated losses and neutralized the high,” said Ari Santos, a trader at H.Commcor.

Earlier, Vale (VALE3 +1.32%) and iron and steel-related stocks were among the Ibovespa’s highest gains, reflecting the appreciation of iron ore prices abroad and rebounding after the strong losses from the previous trading session. However, Petrobras shares (PETR4 -1.77%) accelerated losses, tracking oil prices abroad.

Meanwhile, Ambev’s shares (ABEV3 -1.49%) and paper and pulp companies, such as Fibria (FIBR3 -2.99%), also weighed down. Cemig’s shares (CMIG4 -2.31%) were also among the negative highlights amid company’s attempts to prevent the auctioning of some of its mills.

In the external scenario, investors noted the speech by Janet Yellen, the U.S. Federal Reserve chairwoman, who still left open the possibility of raising interest rates this year, and the geopolitical tension between Korea North and the United States.

Also on the market radar is the vote on the second complaint against President Michel Temer, which was read today in the National Congress and may delay the vote on the pension reform bill.

“I have the impression that the market is digesting that the pension reform would be left for the beginning of next year,” said Pablo Spyer, director of operations at the brokerage Mirae.

However, he considers that the momentum has still been positive for the Ibovespa, which may have room to rise again in the coming days depending on the political scene and the external scenario.

Meanwhile, the international scenario once again contributed to the locally traded U.S. Dollar appreciation against the Brazilian real. The greenback ended the day 0.28% higher, at R$ 3,1680.

by Agencia CMA Latam

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