The stock market in Sao Paulo rose 0.43% despite slowing economic activity in Brazil

This content was published on Jul 17, 2023 – 20:51
July 17, 2023 – 20:51

SAO PAULO, July 17 (EFE). – The stock market in Sao Paulo resisted in the green and rose 0.43% at the close of Monday’s session. Although economic activity in Brazil declined by 2% in May compared to April, the data is worse than expected by the financial market.

The Ibovespa, the parquet benchmark, finished at 118,219 basis points on the day thanks to positive results on Wall Street.

In the foreign exchange market, the US dollar rose 0.24% and closed at 4805 reals for buying and 4806 reals for selling at the Brazilian commercial exchange rate.

The group from Sao Paulo managed to avoid the effects of bad data from the Brazilian Economic Activity Index, which is a predecessor measure of Gross Domestic Product (GDP).

Central bank data indicates a 2% decline in May compared to April.

The result was worse than expected by financial markets, which estimate, however, that it will have a limited impact on the annual forecast, which indicates growth of around 2% for Latin America’s largest economy for this year.

The government attributed this decline in activity to higher official interest rates, which the central bank maintains at 13.75% annually, despite inflation slowing in recent months and amid pressure from the central executive.

Although parquet managed to close in the green, the market leaders, state oil company Petrobras and mining company Vale, closed in the red, with declines of 0.2% and 1.1%, respectively.

Losses were also recorded by insurance company IRB Brasil (-3.1%), meat company BRF (-2.7%) and car manufacturer WEG (-1.9%), among others.

On the contrary, among the higher values ​​were the sugar and ethanol producer Raízen (+3.7%), the investment bank BTG Pactual (+3.1%) and the construction company MRV (+3%).

According to preliminary results, the trading volume on the Sao Paulo Stock Exchange amounted to about 18,500 million reais ($3,850 million or 3,425 million euros), in about 3.3 million transactions. EFE

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