Ibovespa Rises Despite Tensions Between Russia and Ukraine

The Ibovespa operates higher this Monday, the 14th, despite the external scenario with uncertainties due to the dispute between Russia and Western powers and a possible invasion of Ukraine.

Ibovespa: +0.16%, at 113,746 points.
The main index of the Brazilian stock market advances in the opposite direction of the generalized fall in the European stock exchanges. In the United States, the main indices operate between losses and gains.

Stoxx 600 (Europe): – 1.83%
Dow Jones (USA): – 0.49%
S&P 500 (US): +0.30%
Nasdaq (US): +0.23%
Concerns about a possible conflict in Eastern Europe gained strength over the past weekend, with threats of sanctions by the Joe Biden administration in the United States, and statements by its National Security Adviser, Jake Sullivan. According to Sullivan, Russia could invade Ukraine at any time in the next few days.

Even so, the flow of foreign capital continues to sustain the rises in the Brazilian stock market. Foreign investors entered B3 with 40.73 billion reais in 2022 – while institutional investors and individuals have a negative balance of, respectively, 37.18 billion reais and 7.19 billion reais in the year.

The movement also impacts the dollar, which retreats again against the real despite the risk aversion movement abroad.

Commercial dollar: – 0.66%, at 5.208 reais.
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stock highlights
The flow of trading on the stock exchange boosts B3’s own shares (B3SA3), which pull the Ibovespa’s highs in this Monday’s trading session among the most weighted shares in the index’s theoretical portfolio.

B3 (B3SA3): + 2.51%
In variation, technology and e-commerce companies once again lead Ibovespa’s biggest gains, ignoring the risk aversion scenario abroad that usually penalizes growth companies more strongly.

Other upside highlights are papers associated with the local economy, especially Petz (PETZ3) and Dexco (DXCO3).

“The drop in the long-term vertices of the yield curve and the great foreign demand have made companies exposed to the domestic market stand out in the trading session”, say, in a note, analysts at brokerage Ativa Investimentos.

Inter Bank (BIDI11): + 6.37%
Petz (PETZ3): +6.17%
Dexco (DXCO3): +3.75%
American (AMER3): + 3.78%
Petrobras shares (PETR3/PETR4) – which has the second largest share on the Ibovespa – are among the main negative influences of the day, giving back part of the strong gains of the last trading session. Last Friday, the oil company’s shares rose more than 4%, with the appreciation of oil, which exceeded the price level of 95 dollars per barrel at the maximum. This Monday, the price of the commodity went through correction earlier, but returned to present a slight increase.

Investors are also monitoring the direction for the sector in Brazil. On Saturday, President Jair Bolsonaro said he is working with Petrobras to reduce the value of fuels “in a legal way”. He denied, however, that he will interfere with the state-owned company’s prices.

Reviewer overview

Ibovespa Rises Despite Tensions Between Russia and Ukraine - /10

Summary

The Ibovespa operates higher this Monday, the 14th, despite the external scenario with uncertainties due to the dispute between Russia and Western powers and a possible invasion of Ukraine.

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