untitled design

Ibovespa ends up on a high with retailers highlighted; dollar closes against the grain

In the session this Tuesday (9), the assets that make up the Ibovespa portfolio and the dollar reflected the Brazilian political scenario. While financial agents monitor the developments related to the Precatório PEC, the results of the third quarter balance sheet of Banco do Brasil and BTG Pactual gave a relief to the main stock index – which did not happen with the US currency.

The IBOV finished up 0.72% to 105,535.08 points, retreating from a high of nearly 2% this morning.

The dollar ended with a sharp drop of 0.91%, quoted at R$5.4911. On Monday (8), the currency ended the day at R$ 5.541, with a positive performance of 0.35%.

The domestic market is also attentive to Chinese consumer and producer inflation data to be released tomorrow (10), which may present problems in the production and import chains, the rise in agricultural commodities, which, together with inflation, may scare investors, and the release of US inflation data this week.

financial statements

Banco do Brasil released yesterday (8), after closing, the results above analysts’ estimates for third quarter earnings and said that it should have a net profit for 2021 higher than it had previously forecast. The bank sees its recurring net income, which excludes extraordinary items, from BRL 19 billion to BRL 21 billion, compared to the previous range of BRL 17 billion to BRL 20 billion, as its loan portfolio is expected to expand faster.

The Bank also intends to accelerate loan disbursements on riskier credit lines to increase profitability in the coming quarters

The shares ‘BBAS3’ ended the session with a drop of 0.14%, after rising more than 0.60%, this afternoon.

BTG Pactual, on the other hand, ended the third quarter of 2021 with accounting net income of R$1.743 billion, 3.9% higher than the previous record, from the second quarter, and 74% higher than that calculated in the same period last year.

The bank also reported record adjusted net income for a single quarter of R$1.794 billion, 4.4% higher than the previous quarter and 76.6% higher than a year earlier. The adjusted annualized ROAE was 20.1% and the liquidity coverage ratio (LCR) was 213.5%.

The bank’s shares, ‘BPAC11’, fell 4.18%, to R$ 22.94, at the same time, retreating from the high of 1.70%, at 11:40 am. The financial institution was the second worst-performing company today.

biggest highs

  • Magazine Luiza (MGLU3) + 10.06%
  • American (AMER3) +7.65%
  • Via Retail (VIIA3) +6.80%
  • Petz (PETZ3) + 6.22%
  • American Stores (LAME4) +6.21%

biggest casualties

  • PetroRio (PRIO3) -4,54%
  • BTG Pactual (BPAC11) -4.18%
  • Goals (GOLL4) -3.41%
  • Vale (VALE3) -2.46%
  • Telephone (VIVT3) -1.99%

PEC of court orders

On the national scene, the PEC dos Precatório is the great highlight. The second round vote in the Chamber of Deputies is scheduled for today.

The president of the House, Arthur Lira (PP-AL), and government allies say they are confident about the progress of the proposal. The opposition, on the other hand, questions its support for the text.

In addition, the STF (Supreme Federal Court) began to judge the injunction issued by Minister Rosa Weber, who suspended the payment of the rapporteur’s amendments. So far, four ministers voted to suspend the amendments.

The injunction is linked to the progress of the PEC because the rapporteur’s amendment funds have been used by the government to ensure support for the proposal. If vetoed, the government could lose bargaining power.

The market thinks the PEC is the least worst option among the alternatives that have already been suggested to pay for Brazil Aid, since other options can further worsen the situation of public accounts.

Furthermore, as the market does not like to be left in the dark, in a way, the proposal ends up being a more predictable path at this point.

The opposition even asked the STF to suspend the processing of the PEC, but Minister Rosa Weber just denied the suspension. She is the rapporteur for this and two other actions at the Supreme Court involving the proposal.

Reference: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular