On December 23, the Ibovespa index fell by 1.09%, closing at 120,766.57 points. This drop reflects a broader concern over Brazil’s fiscal stability, with the index now down nearly 9% for the year.
Trading volume decreased significantly as investors reacted to the rising dollar, which reached R$ 6.19. Financial planner Idean Alves highlighted that fears of fiscal risk and inflation have driven foreign investors away, contributing to a 25% increase in the dollar’s value this year.
Hypera (HYPE3) stood out with a notable gain of 4.65% after EMS announced its acquisition of a 6% stake in the company. Sabesp (SBSP3) also rose by 2.02% following Moody’s reaffirmation of its credit rating.
However, cyclical stocks suffered losses amid rising costs and economic uncertainty. Azul (AZUL4) dropped by 8.24% due to increased fuel prices.
Brazilian Market Faces Pressure as Ibovespa Dips Below 121,000 Points. (Photo Internet reproduction)
Other companies like CVC (CVCB3), Vivara (VIVA3), and Magazine Luiza (MGLU3) also faced declines, with drops of 6.06%, 5.97%, and 4.79%, respectively.
Alves noted that high household debt levels are likely to reduce consumer spending, further impacting these companies’ stock prices.
This situation underscores the importance of fiscal responsibility and self-reliance in navigating economic challenges. It is crucial for investors to stay informed about market dynamics and potential risks.
GIPHY App Key not set. Please check settings