São Paulo -The Stock Exchange closed higher in an adjustment movement in relation to the outside world, holding itself in the region of 129 thousand points, with the market expecting the monetary policy decision tomorrow (8), after the closing and with an eye on the balance sheet season for the first quarter of 2024. Big stocks also helped with the good performance of Ibovespa. In relation to the Copom, the uncertainties surround the magnitude of the Selic cut – currently at 10.75% per year (aa).
Suzano’s shares (SUZB3) led the Index’s fall of 12.27% due to a public offer that the company made to International Paper (IP) of almost US$15 billion, equivalent to US$42 per company share and was not pleased the market because the offer is practically Suzano’s market value.
On the positive side, the highlight was Vamos (VAMO3) with an increase of 13.04% reflecting the balance that pleased the market, – it recorded a net profit of R$ 183 million, an increase of 8.2% compared to the same period last year (1Q23).
Vale (VALE3) rose 0.62% and Petrobras (PETR3 and PETR4) advanced 2.41% and 1.22%. Itaú Unibanco (ITUB4) registered an increase of 2.06%. Yesterday, after closing, the bank’s results were released, which recorded R$9.8 billion in 1Q24, an annual increase of 15.8%.
The main B3 index rose 0.57%, to 129,210.48 points. Ibovespa futures due in June registered an increase of 0.54%, at 130,375 points. The financial turnover was R$23.2 billion. In New York, the stock markets closed mixed.
Alexsandro Nishimura, economist and partner at Nomos, said that the Stock Exchange managed to recover from abroad and corporate results were on the radar.
“Ibovespa took some of its recent lag behind international peers, driven by better insights into the drivers that put pressure on it during this period, in addition to better-than-expected quarterly balance sheets and the good performance of the companies with the greatest weight in the index’s composition.”
Elcio Cardoso, specialist in capital markets and partner at Matriz Capital, said that the Ibovespa “is working on an upward trend, influenced by the rise of the main banks, Vale and Petrobras and with the continued closing of the interest curve after the strong stress on the curve in last weeks”.
Armstrong Hashimoto, partner and variable income operator at Venice Investimentos, said Ibovespa corrects the previous day’s movement with the American market.
“I believe that the stock market’s rise in today’s trading session is a bit of an adjustment in relation to yesterday’s trading session in which American stock markets rose. The weight was the tragedy in Rio Grande do Sul due to the additional fiscal risk with the help of the federal government with regard to taxes, amnesty for that moment and was seen with strength in the trajectory of the interest curve. We can’t forget the earnings season. Itaú had a strong result [1T24] and shares rise. Vale moves forward with UBS raising its purchase recommendation for the stock, which ends up contributing positively.”
Hashimoto highlighted that the backdrop is the interest rate decision tomorrow (8).
“The Copom fight remains, whether to maintain the cut of 0.50 percentage points (pp) or 0.25pp. The majority believes in 0.25pp. The signal that the BC can give will be important considering the weight of the tragedy in Rio Grande do Sul”.
Gabriel Meira, specialist and partner at Valor Investimentos, said that the news is not so favorable to explain this rise in the Stock Exchange.
“I don’t see the point in this increase. I believe it is due to the detachment in recent days with the outside world. We are on the eve of the Copom decision and this situation [catástrofe climática] of Rio Grande do Sul will bring serious problems to the fiscal framework, which is already very tight. Even though a public calamity has been declared, [os recursos] will be removed from the fiscal target and the market becomes even more apprehensive. Vale rises after a recommendation from UBS [de neutra para compra e com preço-alvo revisado de US$ 13 para US$15 para as ADRs listadas em NY] and Petrobras also rises, even with commodities falling”.
The commercial dollar closed down 0.13%, quoted at R$5.0672. The currency reflected, throughout the session, the wait for the Monetary Policy Committee (Copom), which meets between today and tomorrow.
For the head of Treasury at Travelex Bank, Marcos Weigt, “the cut in the Selic should be 0.25 percentage points (pp), but if it is 0.5 it could strengthen the dollar”.
The rates on future contracts for Interbank Deposits (DIs) close falling, in anticipation of the decision by the Monetary Policy Committee (Copom) on the cut in the Selic rate (base interest rate). Fiscal issues remain on the radar, as it is not yet possible to measure the size of the total damage caused by the floods in Rio Grande do Sul.
At around 4:40 pm (Brasília time), the DI for January 2025 had a rate of 10.205%, from 10.190% in the previous adjustment; the DI for January 2026 projected a rate of 10.420% from 10.440%, the DI for January 2027 was 10.725% from 10.745%, and the DI for January 2028 with a rate of 11.000 from 11.030% in the same comparison.
The main stock indexes in the United States market closed with little change, although they extended a series of gains in the face of growing expectations of interest rate cuts later this year. Meanwhile, investors were discouraged by Disney’s earnings report.
Check below the variation and score of the United States stock indices after closing:
Dow Jones: +0.08%, 38,884.26 points
Nasdaq 100: -0.10%, 16,332.56 points
S&P 500: +0.13%, 5,187.70 points
Tags: Stock market closes higher dollar falls eve monetary policy decision
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