Ibovespa hits 120 thousand points and dollar falls after reform and balance sheets

The main indicator of the performance of shares traded on the Brazilian Stock Exchange, Ibovespa surpassed the 120 thousand points mark in the trading session this Thursday (9/11), with investors reflecting the approval of the tax reform in the Senate plenary and the disclosure of balance sheets of important companies.

At the day’s high, the index reached 120,256.62 points. It is the first time since August that the indicator exceeds 120 thousand points during the trading session.

Shortly after 1 pm, the Ibovespa was still operating at a strong increase of 0.73%, at 120,047.31 points. {{#values}}{{/values}}

The previous day, the index closed down 0.15%, still at 119 thousand points. As a result, it accumulates gains of 5.33% in the month and 8.6% in the year.

The Proposed Amendment to the Constitution (PEC) for tax reform was approved by senators with 53 votes in favor and 24 against – 49 votes were needed for the text to move forward. As it was modified in the Senate, the text will have to be analyzed again by the Chamber of Deputies.

Shares and balance sheets

The performance of Ibovespa this Thursday is driven by the rise in shares such as Petrobras (+2.8%) and Vale (+1.2%).

Among the biggest gains in the session, the highlight was Braskem shares, which rose almost 15%. Alpargatas, owner of Havaianas, also rose sharply, almost 5%. The two companies released their financial statements for the third quarter of 2023.

In addition to Braskem and Alpargatas, companies such as Casas Bahia, Oi and Hapvida also released their balance sheets.

Interest in the United States

In addition to the approval of the tax reform, the financial market awaits a new statement from the president of the Federal Reserve (Fed, the Central Bank of the United States), Jerome Powell, scheduled for this Thursday.

It is possible that the head of the US monetary authority will give some indication about the future of interest rates in the country. At the last meeting of the Fed’s Federal Open Market Committee (Fomc), basic interest rates were maintained at a level between 5.25% and 5.5% per year, the highest level in 22 years.

In the last 14 Fomc meetings, interest rates were raised in 11 and the rate was maintained in three. Raising interest rates is the main instrument used by central banks to contain inflation.

The day before, Powell also made a statement at an event with investors, but did not provide information about the next steps of American monetary policy.

Dollar

After starting the session with strong fluctuations, the dollar fell in the early afternoon. At 1:10 pm, the American currency fell 0.23% and was traded at R$4,896.

The day before, the dollar rose 0.66%, quoted at R$4.907. As a result, it accumulates losses of 2.65% in November and gains of 7.03% in 2023.