Ibovespa ends down 1.17% with services data; dollar closes at BRL 5.45

The Ibovespa registered losses of 1.17%, to 106,334.54 points, in the trading session this Friday (12).

According to Lucas Carvalho, an analyst at Toro Investimentos, the financial statements of Magazine Luiza and Natura did not please investors, which pushed the index down.

The index operated most of the day in the negative field.

Another point of tension in the market was the data of Brazilian services, which showed a drop of 0.6%. Investors had expected the tertiary sector to stay in the positive.

“A large part of the GDP growth comes from the tertiary sector, so the retraction in the data puts the Gross Domestic Product also in possible fall”, says Carvalho.

At the same time, the dollar closed today’s session (12) up 1%, at R$ 5.456.

The US currency posted strong growth against the real today, although it remained in the red for the week as investors heightened caution following weaker-than-expected domestic data and ahead of a long weekend.

Volume of services

Earlier, the IBGE announced a drop of 0.6% in the volume of services September, interrupting five months of high. The result frustrated the market, whose median expectations pointed to an increase of 0.5%.

Impacted more strongly by the transport and information services group, the sector confirms the strong slowdown in the economy in the third quarter.

The sector’s numbers come on a trail of weaker-than-expected results for activity in September. In recent days, the IBGE has also announced a 0.4% drop in industrial production and a 1.3% drop in retail trade.

After the announcement, Credit Suisse worsened its estimates for the Gross Domestic Product (GDP) of Brazil this year and next, now projecting an economic contraction of 0.5% in 2022, with inflation expected to remain at high levels.

The private bank’s previous projection was for growth of 0.6% in GDP next year. For 2021, Credit Suisse has lowered the estimate to an economic expansion of 4.8%, against a rate of 5.0% previously forecast.

Up and down the Brazilian stock market:

Felipe Vella, technical analyst at Ativa Investimentos, says that the Ibovespa is being mainly impacted by the Luiza magazine (MGLU3), which reported an 89% drop in third-quarter profit the day before, and by Natura, which will go public here in Brazil and open in the US.

Natura also announced today a 28.5% drop in profit between July and September.

Americanas shares soared over 11%, after a better-than-expected result for the third quarter, with an expansion of almost 24% in total gross sales in the GMV concept.

Company executives, the result of the merger of the assets of Lojas Americanas with the subsidiary B2W, also stated that the pace of sales growth in October is faster than in the third quarter.

See below for the main highlights of this afternoon:

biggest highs

• American (AMER3) +5.83%
• American Store (LAME4) +5.61%
• Carrefour (CRFB3) + 3.15%
• BR Malls (BRML3) +3,14%
• Petrobras (PETR4) +2.04%

biggest casualties

• Magazine Luiza (MGLU3) -18.32%
• Nature (NTCO3) -17.54%
• Meliuz (CASH3) -9.37%
• CVC (CVCB3) -9,34%
• Locaweb (LWSA3) -8.61%

The Brazilian stock exchange will not operate next Monday (15th) due to the Proclamation of the Republic holiday.

*With information from Reuters