Ibovespa, the benchmark stock index in Brazil, closed up 1.02% to 72,123.41 points Wednesday, influenced by the 5.12% rise on Petrobras’ preferred shares, reflecting market expectation with the House of Representatives’ vote on the transfer of rights in the pre-salt layer.
The gains were also fueled by the expectation that the Brazilian Central Bank’s Monetary Policy Committee (Copom) keep the basic interest rate unchanged.
“The Selic should remain stable at 6.5%, but it is worth paying attention to the official statement,” said Luis Gustavo Pereira, a strategist at Guide Investimentos.
According to Mirae Asset chief analyst Pedro Galdi, Petrobras shares pulled the Ibovespa higher. The lull in the global scenario, which put aside concerns about the trade war between the United States and China, also positively impacted Brazilian shares.
According to a trader, banks’ stocks rose mainly due to a technical adjustment but also driven by the expectation of maintenance of the Selic at 6.50% per year. Itau Unibanco’s shares rose 1.85%, Bradesco’s stocks rose 2.13%, while Banco do Brasil’s gained 2.89%.
Meanwhile, in a day of volatility, the locally traded U.S. dollar appreciated at the end of the trading session, rising 0.90%, at R$ 3.7790, with investors seeking protection. Abroad, the greenback had a mixed movement against the main currencies and those of emerging countries.
For THursday, analysts point out that the movement of the Ibovespa depends on the tone of the Copom statement. According to Galdi, if the tone indicates the possibility of the Selic going up in the short term, the markets may point back down.