Ibovespa extends seven-month low; earnings drag in utilities

The Ibovespa shed 0.1% to close at 166,934 on Friday, extending its seven-month low.

Oil and gas prices gained as the US threatened to intensify economic pressure on Iran, including by extending the naval blockade.

Energy-driven inflationary pressures weighed on financials and other credit-sensitive shares as bond yields moved higher.

Bradesco lost 0.7%, Itaúsa shed 0.4% and B3 fell 0.6%, while Itaú (+1.8%) and Banco do Brasil (+0.9%) bucked the trend.

Utilities also traded lower, with Sabesp down over 2% and CPFL losing over 4.5% after reporting earnings, as growth in its industrial sector was modest and net debt rose 19.2%.

Renner shed 2.6% after UBS BB abandoned its buy recommendation and cut its price target.

Raízen (-4%) posted a net loss in the first quarter of fiscal 2026/27.

Vale (-0.8%), Ambev (-1.1%) and Rede D’Or (-2.5%) also weighed on the index.

On the upside, Petrobras rose 0.4% on higher oil prices, while Embraer added 2.4% after JPMorgan raised its price target.