Bovespa (B3) closed higher in Brazil after the privatization of BR Distribuidora (BRDT3) and the announcement of FGTS money release

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

BR Distribuidora was up 5% on the stock market after the sale of shares made by Petrobras.

The market also considered positive the policy for the Government Severance Indemnity Fund (FGTS) and PIS-Pasep Fund quotas announced by the government. Workers can now withdraw up to R$ 500 from each active or inactive FGTS account (from current or previous employment).

B3: Ibovespa sets a new record and reaches 102 thousand points

The Ibovespa traded today in a high and hit a new record, above the 102 thousand points. In the week, the main stock index of the Brazilian financial market accumulated a gain of 4.05%, the highest increase since the last week of December 2018.

The optimism of Brazilian investors is a direct result of the growing possibility of interest cuts in the United States and the increase in the voting chance of the Pension Reform in Brazil.

The Broadcast website today reported a report in which the analyst at Terra Investimentos Régis Chinchila said that the signaling that central banks in the US and other parts of the developed world can reduce interest rates is positive for Brazil.

BM&F Bovespa (B3), the São Paulo Stock Exchange, exceeds the number of one million individual investors

BM&F Bovespa, the São Paulo Stock Exchange reached, in May 2019, the number of 1.09 million individual investors. The mode of investment maintained in May the pace of entry of new investors in the wake of the low-interest rate (Selic) environment in Brazil. Thus, the growth in relation to the number of active individuals investors at the end of 2018 was about 35% so far. Continuing the trend thus, the mark of 1.5 million individuals should be reached by the end of 2019.

Despite the growth, the number represents 1.3% of the Brazilian population. To give you an idea, Brazil is very far from the US, for example, where 54% of people invest in the stock market. The growth was announced on June 10 by the São Paulo stock exchange operator.

B3 also reported that the Brazilian domestic stock market turnover in May 2019 reached 15 billion reais, an increase of 5.8% compared to the same month last year. This gave B3 26% higher contract revenue.

Bovespa B3 opens higher today after the Ibovespa closed down yesterday

The main indicator of the São Paulo Stock Exchange, B3, opened higher today (06.Jun.2019), after having retreated more than 1% the day before. The recovery occurs because of the relatively benign scenario abroad.

Yesterday, Ibovespa had shown a fall due to new disagreements between the National Congress and the government of Jair Bolsonaro. The approval of the supplementary credit, aimed at allowing the government to continue to spend above the spending ceiling, was postponed again. This left the Brazilian financial market nervous and the reaction was a downturn on the Stock Exchange (Bovespa). Yesterday, the Ibovespa had a 1.75% drop, the highest since May 16, 2019.

Another factor that displeased the Brazilian financial market was the announcement of possible distancing of the current government from liberal policies. Yesterday, according to Bloomberg, the government of Jair Bolsonaro assumed that it could demand further flexibilization of the limit of public expenses after the ordeal of the Pension Reform. That would throw down the commitment of the minister Paulo Guedes's team to fiscal balance.

The B3, the main indicator of the Bovespa, falls after Brazilian Economy Minister Paulo Guedes threatens to resign

Today, May 24, 2019, the Bovespa Index had its third consecutive day of low. B3's main share index rose more than 1% in the morning, but lost its force in the afternoon and closed 0.30% lower at 93,627.80 points.

This fall occurred after VEJA magazine published an exclusive interview in which the Economy Minister, Paulo Guedes, said he would resign if reform proposal becomes just a "little Pension Reform".

In the week, however, the Brazilian stock market was up 4.04%.

The dollar, on the other hand, closed today at R$ 4.0152, the lowest price in 10 days. The Brazilian Real was the emerging currency that strengthened the most on Friday in relation to the US currency.