Ibovespa renews its maximum and finishes above 89,000 points for the first time

For market analysts, the stock market benchmark in São Paulo can reach 100,000 points by the end of this year

According
reuters

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November 5, 2018, 20h07 – Posted on November 5, 2018, 19h39

ABOUT Ibovespa (5), closing for over the first time over 89,000 points, with the participation of banks and Petrobras among the main supporters, because financial agents distribute bets on a positive program in the president-elect government Jair Bolsonaro.

Corporate news confirmed the fourth summit, followed by the stock exchange in São Paulo, the most important were Cosan and Gerdau, as well as balance sheet expectations, as well as Wall Street, and S & P 500 and Dow Jones advanced before the US parliamentary election. Tuesday (6).

Stock index of the Brazilian Stock Exchange, Ibovespa, increased by 1.33% to 899.59.16 points, ending with the highest quotations and history. The financial volume of the trading session amounted to 14.7 billion realities.

Bernd Berg, Global Strategist for Macr and Currency at Woodman Asset Management, said he remains very optimistic about the outlook for Brazilian assets.

"Bolsonaro is making progress by creating a respected team, and I expect significant reforms to be implemented next year," he said, adding that he sees Ibovesp's potential to reach 100,000 points by the end of the year and reach 130,000 by mid-2019.

"Economic revival and increased investor confidence will cause new inflows into portfolios," says the strategist.

Despite the strong outflow of foreigners from the Bovespa segment in October to 6.2 billion realities, data released on Monday by B3 showed net inflows in the last two trading sessions last month from 307 million realities to 30 and 532, 25 million realities on 31.

Juliano Ferreira, macro strategy strategist at BGC Liquidez DTVM, said in a note to customers that the potential pension reform scenario – one of the main issues regarding investment radar – is positive, but not straightforward, citing the obstacles that must be overcome .

Spinelli Dom Maklerski expects new announcements from the Bolsonaro team for the entire week, and will also present a detailed economic plan in detail. "Good names and good intentions may still have a positive impact on the stock exchange," the brokerage team said in a distributed report for customers.

The Bolsonaro transitional team is starting work this week with the techniques of the current government of Michel Temer. Federal Deputy Onyx Lorenzoni (DEM-RS) was appointed by the president as an extraordinary minister to coordinate the team.

In the US, S & P 500 and Dow Jones jumped at the end of the trading session, thanks to the support of Brent oil supporting energy stocks before the US parliamentary election, while Nasdaq resigned, aggrieved by the withdrawal of Apple's shares.

In this session trading hours in the Bovespa segment were changed due to the beginning of DST in Brazil and the end of DST in the US, with "closing" of the Brazilian stock exchange session from 17:55 to 18:00, information from B3.