(RTTNews) – After closing the last two trading sessions near stability, the Ibovespa fell by 0.53% Thursday, settling at 75,604.34 points in the face of a worsening of the external scenario and tracking commodities losses abroad, which led some investors into a profit-taking after recently achieved record highs by the benchmark stock index in Brazil.
“The recent highs gave margin for sale. There are stocks that have already risen 30%, 40% in the month. Today we still had Vale in decline, due to iron ore losses,” said José Costa, an economist at Codepe Corretora.
Meanwhile, Standard & Poor’s (S&P) credit risk rating agency downgraded China’s sovereign note to ‘A+,’ from ‘AA-,’ with a stable outlook. Concern over the Chinese economy has affected commodities, with iron ore retreating prices. As a result, Vale’s shares (VALE3 -1.99%) were the worst losses at Ibovespa, as well as its shareholder Bradespar (BRAP4 -2.74%), and CSN (CSNA3 -2.94 %).
Oil futures contracts also performed weaker, affecting Petrobras’ shares (PETR3 -1.26%).
On the opposite end, banks’ shares improved, especially those of Banco do Brasil (BBAS3 +2.19%), after JP Morgan raised its recommendation for the company’s shares from neutral to purchase.
Investors also continue to monitor the political landscape after the new criminal complaint against President Michel Temer has been accepted by the Brazilian Supreme Court (STF).
The locally traded U.S. dollar rose 0.44%, closing at R$ 3,145, driven by falling commodities around the world and China’s downgrade by S&P, triggering risk aversion against emerging countries.
For the coming days, analysts do not rule out new profit-taking movements but predict Ibovespa falls as punctual, as the latest economic data has indicated a recovery in the Brazilian economy amid lower inflation, giving room for more cuts in the country’s benchmark interest rate.
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