Ibovespa jumps 3% to 185,205 on election poll and rallies
Brazil’s Ibovespa rose 3% to close at 185,205 on Wednesday, nearing a four-month high after an election poll showed President Lula and Senator Flávio Bolsonaro in a technical tie. Financials, utilities and large caps lifted.
The Ibovespa jumped 3% to close at 185,205 on Wednesday, nearing a four-month high after a new election poll showed President Lula and Senator Flávio Bolsonaro in a technical tie.
Both candidates recorded 42% and 41% of voting intentions, respectively, in a potential runoff.
Markets view Bolsonaro as more fiscally restrictive amid elevated yields and weak business activity.
Bond yields fell after GDP data showed a contraction in consumer spending, while industrial production rebounded less than expected.
Financials rallied, with Banco do Brasil up 4.9% and Itaú 3.8%.
B3 gained 3.8% after tax assessments totaling R$2.2 billion were canceled.
Utilities also gained, Axia rose 3.4% and Sabesp 4.2%.
Vale gained 3.2% despite lower iron ore prices, while Petrobras added 2.8% as oil rebounded.
Magazine Luiza jumped 16.9% on a Mercado Livre partnership, while Azzas surged 11.3% after agreeing to split its businesses into two listed companies.