The Brazilian market has been volatile in the past few months, with extreme highs and extreme lows.
Inflation has been exceeded expectations, suggesting a stronger rate hike. This Thursday (18th November),
the Brazilian market has suffered yet another day of losses, closing at 102,426 points, renewing its worst
annual score. IBOVESPA has been pulled down mainly due to prominent fiscal fears over the last trimester,
and a significant drop in iron ore related stocks.
On the political front, investors anxiously await the voting results on PEC ‘dos precatorios’ in the senate
after critics of the original proposal presented. The new proposal’s aim is to be used as a tool dodge the
spending cap and fund the ‘Auxilio Brasil’.
Companies like ‘Meliuz’, ‘Alpargatas’ and ‘Intermedicas’ have been today’s highlight. CASH3 (Meliuz)’s
astonishing 10% increase is partially due to the bank of America’s revision from a hold to a buy rating.
ALPA4 (Alpargatas) had a 4.9% increase, likely due to the approach of the long-awaited black Friday.
GNDI3 (Intermedia) had a 3.7% increase, despite the recent losses of other health companies.
On the international front, the USA’s markets have diverged. While Dow&Jones has closed with a 0.17%
decrease, Nasdaq and S&P 500 have had a 0.45% and a 0.34% increase.
Written by: Bruna Zarzur
Edited by: Anna Kissajikian