By Paula Arend Laier
SÃO PAULO (Reuters) – O closed in another session on Monday, marred by concerns over the ramifications of Americanas’ accounting woes, especially the risk of a recovery action by the retailer and its aftermath, with the share collapsed around 40%.
Falling oil prices have added to the pressure given the effect on Vale’s shares. Without Wall Street’s business hub for vacations in the United States, foreigners were at a buying end.
Benchmark index of the Brazilian stock market, the Ibovespa fell by 1.54%, to 109,212.66 points. The financial volume was 18.4 billion reais, a daily average of 23.6 billion reais this year.
In the opinion of the manager Daniel Alberini, shareholder of CTM Investimento, the drop reflects the concurrence of some factors, the “hottest” are the events related to the Americanas, which end up contaminating bank stocks – due to the company’s debt exposure given the risk of judicial recovery.
Alberini also drew attention to the weakness of commodities such as iron ore and oil, as well as the absence of the New York stock exchanges, due to the Martin Luther King party in the United States, noting that foreigners were the great buyers of emerging markets and Brazil.
External capital flow in the secondary equity market is positive at 2.4 billion reais in 2023 through January 12, according to data from B3 (BVMF:).
Investors also continue to analyze the package of economic measures presented by the new government, with an adjustment plan of up to 242.7 billion reais in the 2023 accounts, announced last week.
At the sight of Morgan Stanley (NYSE:) The Treasury Department’s attempt to reduce significant tax slippage sends a positive message.
“However, it would likely reduce our projection of the primary fiscal deficit for 2023 by just 40 basis points (from -1.2% to -0.8%), less than what is needed to reverse the potential fiscal deterioration,” assesses the the bank’s chief economist, Andre Loes, and economist Thiago Machado, in a report to clients.
In the afternoon, financial agents again echoed the news from Agência Estado/Broadcast that Lula is considering raising the minimum wage in 2023 to more than 1,320 reais.
In parallel, Finance Minister Fernando Haddad said the government had decided to keep IPI rates low to signal to industry that it intends to move forward with the tax reform, reiterating that the goal is to approve the change to the tax system on consumption still in this semester.
On the technical side, the Itaú BBA team said that Ibovespa opened the space for a profit taking move in Friday’s trading session and will find the next supports at 108,100 and 106,700 points. “On the upside, the big challenge of the week will be breaking through the 113,800 region,” he said.
– AMERICANAS ON collapses by 38.41%, to 1.94 reais, while the market evaluates the consequences of accounting inconsistencies for 20 billion reais, with the company obtaining an injunction to protect creditors and announcing the hiring of Rothschild to renegotiate the debt. The CVM has opened a third lawsuit against the company, which also saw Moody’s cut its rating.
– MAGAZINE LUIZA ON (BVMF:) rose by 12.24% to 3.85 reais and VIA ON jumped by 10.55% to 2.62 reais. For Morgan Stanley analysts, any judicial recovery should accelerate Americanas’ market share, with Mercado Livre (NASDAQ:) likely to lead the way in market share gains and Magalu and Via among potential beneficiaries. The movement of retailers started from the trajectory of other consumer-related securities, with the sector index down by 1.31%, in the wake of the increase in the slope of the curve of future rates.
– BTG PACTUAL (BVMF:) UNIT fell 3.38% to 21.46 reais amid concerns over the bank’s exposure to US debt. Over the weekend, BTG challenged the injunction protecting the retailer from creditors. Analysts had drawn attention to the bank’s and other financial institutions’ exposure to the company. In the sector, ITAÚ UNIBANCO PN (BVMF:) lost 1.08% and BRADESCO PN (BVMF:) lost 3.07%.
– AMBEV ON (BVMF:) fell by 4.9% to 13.20 reais, influenced by the Americanas case. The retailer’s majority shareholders also control the beverage maker. Morgan Stanley strengthened its “underweight” recommendation for Ambev shares, expecting weak fourth-quarter numbers and seeing risks related to the macroeconomic and competitive environment in Brazil.
– C&A (BVMF:) ON rose 11.52%, to 2.71 reais, reaching 3.13 reais at its best time, after O Globo newspaper columnist Lauro Jardim published that Lojas Renner had preliminary negotiations for the purchase of C&A in Brazil. Wanted by Reuters, Lojas Renner and C&A declined to comment. C&A also said it “remains intensely focused on developing its business plans in the country.” LOJAS RENNER ON (BVMF:) lost 2.04% to R$19.73.
– EMBRAER ON (BVMF:) climbed 3.94%, to R$16.37, after receiving firm orders for 15 new E195-E2 aircraft, valued at US$1.17 billion at list prices. The aircraft maker did not disclose the buyer and said the order will be added to its order book for the fourth quarter of 2022. For Citi analysts, the news is “at least slightly positive”.
– VALE ON (BVMF:) fell 1.67%, to 92.25 reais, on the back of lower iron ore futures prices in Asia amid reports of rising Covid-19 deaths in China renewing worries about demand. The most traded iron ore contract in Dalian closed 4.3% lower. On the Singapore Stock Exchange, iron ore fell 4.4% in February.
– PETROBRAS PN (BVMF:) lost 2.16%, to 24.04 reais, on a day of falling oil prices overseas, yielding almost 1%.
– GOL (BVMF:) PN fell by 5.19%, to 7.49 reais, and AZUL PN (BVMF:) fell by 3.52%, to 11.25 reais. XP (BVMF:) reiterated a cautious view for the sector, with a “neutral” recommendation, citing that the sector faces sluggish economic activity and that Azul is still expected to be highly leveraged and cash burning in 2023.
– BR REAL ESTATE UP advanced 1.81%, to 6.18 reais. GP Investments announced on Saturday an agreement with THB which includes a public offering of shares (OPA) for the purchase of 100% of the capital of BR Properties (BVMF:) at the price of 1.60 reais per share.
(By Paula Arend Laier; editing by Aluísio Alves)
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