After renewing lows, Ibovespa takes a breath and closes up 1.37%

The Ibovespa closed the session this Friday (5) up 1.37%, at 104,824.23 points, easing tensions after renewing lows at the close of yesterday (4). The stock market’s positive performance today was the result of Bradesco’s balance sheet, in addition to the financial agents continuing to monitor the development of the PEC dos Precatórios.

The financial institution, which closed the shares ‘BBDC4’ up 4.93%, at R$ 19.99, today, recorded last Thursday recurring net income of R$ 6.7 billion in the third quarter, an increase of 34.5% compared to the same period in 2020. The result was the second highest in Bradesco’s history. The bank has a 5.63% stake in the Ibovespa portfolio.

In the center of Brazil, the president of the Chamber, Arthur Lira (PP-AL), guaranteed that the PEC will be approved in the second round at the House. The project will allow the creation of a social program with an expected payment of 400 reais that will end at the end of 2022, the election year.

“The small difference in votes in the first round vote may be indicating that second round approval is at risk. Our assessment is that, if this happens, the investors’ reaction can be quite positive”, stated the Genial Investimentos team in comments to clients.

Throughout the day, the improvement in the trading session was supported by the external scenario, with data from the labor market in the United States corroborating positive perspectives for the North American economic activity at the beginning of the fourth quarter.

Job creation in the United States increased more than expected in October as summer Covid-19 infections in the Northern Hemisphere eased, providing further evidence that economic activity is picking up steam at the start of the fourth quarter. . 531 thousand jobs were created outside the agricultural sector last month, informed the Department of Labor in its employment report, this Friday (5).

Employment data was also responsible for closing the dollar in a sharp fall of 1.53% to R$5.5225, the biggest daily loss in almost 2 months against the real. Investors interpreted this morning’s data as quite healthy, but stressed that they should not increase pressure for the Fed (Federal Reserve, US Central Bank) to intensify its process of reversing its stimulus or anticipate interest rate hikes. On the eve, the US currency in sight rose 0.35%, to R$ 5.6085 on sale.

The Federal Reserve decided, on September 21, to keep the country’s basic interest rate unchanged, between 0 and 0.25%.

Anderson Meneses, CEO of Alkin Research, wrote to Reuters that, “with supply chain constraints and a low participation rate, strong employment data could mean a stabilization of supply with less inflationary pressure and a consequent drop in treasuries (bonds) yield of the United States Treasury)”. Higher yields in the US tend to benefit the US currency.

Scholarship Highlights

PetroRio (PRIO3) closed the last trading session of this week with the position of “highest high”, with a positive variation of 20.09%, at R$ 28.09. The move is the result of the company’s announcement that it was chosen to begin exclusive negotiations on the final terms for the purchase of Petrobras’ Albacora and Albacora Leste fields.

Below was Magazine Luiza (MGLU3), up 12.64%, at R$ 12.48. The retailer’s growth has as a backdrop the result of the Free Market, released yesterday, with an increase of almost 30% in sales volume on the Gross Merchandise Volume (GMV) metric.

• PetroRio (PRIO3) +20,09%
• Magazine Luiza (MGLU3) + 12.64%
• Via Retail (VIIA3) +10.03%
• Blue (BLUE4) +9.38%
• Goals (GOLL4) +8.81%

See the biggest casualties below:

• Gerdau (GGBR4) -2.86%
• Itaú (ITUB4) -2.46%
• Usiminas (USIM5) -2.20%
• Itaúsa (ITSA4) -2,15%
• Gerdau (GOAU4) -1.95%