Ibovespa advanced on Monday, with an unexpected contraction in Brazilian economic activity in October on the radar, while Braskem was in the spotlight after announcing Novonor’s agreement to sell its stake in the petrochemical company to investment firm IG4.
Around 11:10 a.m., the Ibovespa, benchmark of the Brazilian Stock Exchange, rose 0.93%, to 162,260.18 points. The financial volume amounted to 2.46 billion reais.
The IBC-Br, calculated by the Central Bank and considered as an indicator of GDP, recorded a decrease of 0.2% in October compared to September, on a seasonally adjusted basis. Forecasts established in a Reuters survey showed an increase of 0.10%.
The release corroborated DI rate relief, which tends to benefit the stock market, as it strengthens the argument of those who cite the economic slowdown among the reasons BC began cutting interest rates in January.
The positive move in the Brazilian trading session was also supported by rising Wall Street stock futures and falling yields on North American Treasury bonds.
According to the Itaú BBA team, Ibovespa is on track to end 2025 in a strong appreciation scenario, supported by the expectation of interest cuts in Brazil and the United States, a slowdown in inflation and a robust flow of external capital.
“With an increase of more than 30% on the year, this movement reflects not only favorable global conditions, but also the resilience of the domestic market, which presented superior performance compared to commodity exporting companies,” he said in a report.
Technical analysis, according to the Itaú BBA team, indicates that the index continues its upward trend, with projections indicating levels between 165 thousand and 180 thousand points, after crossing the 142 thousand mark in August.
STRENGTHS
– BRASKEM PNA increased by 4.16%, after Novonor signed an exclusivity agreement with the investment company IG4 Capital to sell its stake in the petrochemical company. The negotiation concerns the acquisition of debts of Novonor, formerly Odebrecht, from banks holding Braskem shares as collateral.
– ISA ENERGIA BRASIL PN increased by 5.56%, renewing its all-time high at the best time, at R$28.97, after a double “improvement” from JPMorgan analysts, who now adopt an “overweight” recommendation for the shares of the electricity company. They also increased the target price for the end of 2026 from R$26.50 to R$30.
– REDE D’OR ON appreciated by 4.18%, after its board of directors approved the payment of interim dividends, interim dividends and interest on equity which together total approximately 8.12 billion reais.
– BRADESCO PN recorded an increase of 1.82%, in a positive session for the Ibovespa banks, with BTG PACTUAL UNIT with a gain of 2.12%, ITAÚ UNIBANCO PN up 0.8%, BANCO DO BRASIL ON up 0.97% and SANTANDER BRASIL UNIT up 0.78%.
– PETROBRAS PN advanced by 0.79%, despite the fall in oil prices abroad, where the barrel under Brent contract fell by 0.51%. The state-owned company announced that the protests in the company’s units due to the oil workers’ strike movement, which began this Monday, do not affect the production of oil and oil products.
– VALE ON rose 0.35%, on a day of weakness in iron ore futures in China. The most traded contract in Dalian ended the day’s session down 0.92%. In the mining and steel sector, CSN MINERAÇÃO ON fell 1.22% and CSN ON lost 1.13%.
– SUZANO ON fell by 1.41%, in a context of falling dollar against the real, KLABIN UNIT losing 0.21%.
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