Ibovespa closes at 206,000 points after the first round of elections
Investors observed euphoria in domestic markets
TL;DR
- The Ibovespa reached a record closing high of 206,911.89 points, marking a 7.7% increase.
- The election results, with Flávio Bolsonaro leading Luiz Inácio Lula da Silva, were interpreted by markets as favorable for fiscal adjustments and macroeconomic stabilization.
- Companies in sectors benefiting from lower interest rates, like retail and construction, experienced notable gains.
- JPMorgan upgraded Brazilian stocks to 'overweight', citing a more favorable risk-return profile.
- Petrobras, BTG Pactual, Itaú Unibanco, Magazine Luiza, and construction companies were among the top performers.
- Suzano and Embraer experienced losses due to the strong appreciation of the Brazilian real.