Ibovespa shows uncertainty with Vale decline and company news on the radar By Reuters

© Reuters. Iron ore in a Vale mine in Carajás, Parauapebas 07/29/2012 REUTERS / Lunae Parracho

By Paula Arend Laier

SAO PAULO (Reuters) – The São Paulo stock exchange did not show a sustained trend on Tuesday, with the pressure from the decline of the Vale share, in the wake of the decline in Chinese prices, while Sul América (SA: ) and MRV have responded positively to company news.

At 11:07 am, the Ibovespa was down 0.12% to 119,599.87 points. At the very least, earlier it even fell to 119,297.62 points. At most, he reached 120,156.94 points. The financial volume amounted to 4.75 billion reais.

Amid the operations targeted at the end of the month, with the Ibovespa so far heading for a 1.8% drop in August, financial officers are also monitoring developments in Brasilia, with potential effects on the budget situation and on the price behavior in the country. .

The government is expected to send Congress its budget proposal for 2022, as well as disclosure of the readjustment value of the electricity tariff is expected.

Earlier, the IBGE reported that Brazil had reached the end of the second quarter with a drop in employment due to the rise in employment, to 14.1%, but still with 14.4 million people unemployed. and the market still seeking to recover from the recent crisis.

The Central Bank also reported that consolidated public sector expenditure on interest jumped to R $ 45.119 billion, from R $ 5.838 billion in the same month last year, reflecting the weight on the public accounts of variables such as inflation. and more.

According to the chief economist of the Modalmais digital bank, Alvaro Bandeira, investors in Brazil are stressed by the tense political environment, the expectation of large protests for and against the government on the next 7, manifestos from class entities , reforms that do not go into the future and the water crisis.

Moreover, he added, there are always expectations of populist measures. Abroad, Wall Street saw a drop in major stock indexes, particularly hit by the drop in tech papers, while data from China showed growth in manufacturing activity slowed more than expected in August. .

Strong points

MRV ON (SA 🙂 rose 5.3%, as the construction company’s board of directors approved a new repurchase program of up to 24.145 million shares. In the sector, Cyrella ON (SA 🙂 grew by 2.9%. Sul América UNIT (SA 🙂 appreciated by 3%, after having presented a firm unsolicited proposal for the acquisition of up to 100% of the capital of Grupo HB Saúde for 485 million reais. Vale ON (SA 🙂 is down 1.9%, affected by falling iron ore prices in China, with shares in the mining and steel sector of Ibovespa as a whole in the red. CSN ON (SA 🙂 lost 2.8%. Petrobras PN (SA 🙂 fell by 1.5%, following the weakness of prices on the foreign market. Investors also echoed President Jair Bolsonaro’s comments earlier this Tuesday about starting “to work now on the issue of fuel prices.”

Itau Unibanco PN (SA 🙂 increased by 1.2% and Bradesco PN (SA 🙂 increased by 1%, with bank papers providing relevant support to Ibovespa. Alliar ON, which is not on the Ibovespa, fell 10.7% after Rede D’Or (SA 🙂 São Luiz gave up on launching a public offer (takeover bid) for the company’s acquisition of medical diagnosis. Rede D’OR was still up for auction due to a block swap transaction. Stoneco lost 2% in New York, after reporting an adjusted net loss of R $ 150.5 million in the second quarter last night, reversing a positive result a year earlier, with an additional provision, after admitting to being surprised by the business failures. credit.

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