Ibovespa closes with a slight drop awaiting IPCA and Copom minutes; dollar falls 0.50%

The stock exchange closed with a slight drop of 0.08%, at 126,931.47 points this Monday (25/03). The trading session was practically stable, without clear winds and waiting for important inflation indicators in Brazil and abroad that should guide the market this week. The Copom minutes, to be released this Tuesday, are another point of attention for Brazilian investors.

The dollar also retreated and lost strength against the Brazilian currency in a session marked by investor caution, and ended up trading at R$4.9734.

Ibovespa

The Ibovespa did not have a very clear direction, as investors prepare for a more hectic and concentrated week. On Friday (29), the stock exchange, bank branches and brokers are not open due to the Easter Holiday.

Thus, the main stock market index operated sideways, reflecting investors’ caution, says Alexsandro Nishimura, economist at Nomos. According to the economist, this week, investors are paying attention:

Tuesday: Copom minutes referring to the latest decision to cut the Selic rate to 10.75% per year
Tuesday: IPCA
Thursday: Quarterly inflation report to be released by the BC on Thursday
Throughout the week: Latest corporate results from the earnings season

Oil company shares were highlighted on Ibovespa, following the rise in the price of a barrel of oil on the international scene. The cost of the Brent unit futures contract for May rose 1.42%, worth around US$86 per unit.

Shares of 3R Petroleum (RRRP3) led the sector in the index with an increase of 3.83%. Then, the share of PetroReconcavo (RECV3), in negotiations for a merger with 3R, rose 2.82%. Right behind, Prio (PRIO3) achieved gains of 2.14% in market value.

“The oil sector was the negative highlight today, but the banking, retail and electrical sectors weighed on the Ibovespa today”, reports Alex Carvalho, analyst at CM Capital.

Investors should expect more volatile sessions in the coming days, with the most important radar data concentrated between Tuesday and Thursday. This is the analyst’s forecast for the performance of Ibovespa this week.

Dollar

With no news on the United States stock exchanges, the dollar gave way against the Brazilian real, with a devaluation of 0.50%. The North American currency ended the session quoted at R$4.9734.

“International markets started the week on a difficult note. This week will have important developments for the PCE in the USA”, says Matheus Spiess, analyst at Empiricus Research. The PCE is one of the main inflation indices in the North American economy.

At the same time, on the international scene, the dollar also lost strength. The DXY index, which compares the currency to major country pairs such as the yen and the euro, fell 0.25% to 104.210 points.

Biggest shares

The stock with the best performance, considering all the shares present on the Ibovespa, was Hidrovias (HBSA3).

The stock rose 14.89% on the stock exchange after the announcement of the acquisition of the Ultrapar holding company, of the Ipiranga and Ultragas brands, for almost 17% of Hidrovias’ capital. The operation involves the sale of around 128 million shares of the company (HBSA3) at R$3.98 each by the Pátria group and Temasek. Furthermore, Ultrapar declared that it has share derivative instruments equivalent to 4.99% of the company’s capital.

Check out the five biggest shares on the stock market. The list only includes Ibovespa shares that exceeded the value of R$1 million in daily trading volume.

Hidrovias do Brasil ON (HBSA3): +14.89%
Hi BR ON (OIBR3): +12.86%
Hi BR PN (OIBR4): +8.15%
Enauta ON (ENAT3): +5.85%
Alliar ON (AALR3): +3.50%

Stocks falling

On the other hand, the falling stock was Time for Fun (SHOW3). The drop came on the same day as the announcement of pop singer Madonna’s concert in Rio de Janeiro.

Itaú should sponsor the arrival of the singer from Brazil, in the format of a unique and free show on Copacabana beach.

Check out the five main negative highlights of the stock market below. The list follows the same criteria as the previous ranking.

Time for Fun ON (SHOW3): -7.55%
Lojas Quero-Quero ON (LJQQ3): -7.47%
Infracommerce ON (IFCM3): -7.14%
Viveo ON (VVEO3): -6.47%
Azevedo&Travassos ON (AZEV3): -6.29%

New York Stock Exchanges

New York stock markets closed lower with corporate news in focus and expectations for the release, this week, of the consumer spending price index (PCE). The Nasdaq ended the session lower, after setting an all-time closing record on Friday.

Shares of Intel and AMD fell in reaction to news that China has begun implementing guidelines that will keep the companies’ processors out of government PCs and servers. Boeing, however, reacted strongly to changes in its top management.

Thus, the Dow Jones index closed down 0.41%, at 39,313.64 points, the S&P 500 fell 0.31%, to 5,218.19 points, and the Nasdaq fell 0.27%, to 16,384. 47 points.

European Stock Exchanges

European stock exchanges closed with different performances although the Frankfurt market maintained its good momentum, which led the DAX to renew its historic closing high. Paris continued breathlessly, on a day with a relatively weak agenda, without relevant economic indicators.

In London, the FTSE 100 index closed down 0.17%, at 7,917.57 points. Meanwhile, on the continent, Frankfurt’s DAX index rose 0.30%, extending the movement of renewing highs, closing at 18,261.31 points. The CAC 40, in Paris, on the other hand, remained stable, at 8,151.60 points, still remaining close to the closing record of 8,201.05 set on April 19th.

Finally, in Milan, the FTSE index rose 0.86%, to 34,639.41 points, and in Madrid, the Ibex 35 rose 0.08%, to 10,952.20 points. The PSI 20, in Lisbon, fell 0.46%, to 6,199.21 points.