Main index of the Brazilian Stock Exchange closes the session above 115 thousand points after a day of strong falls; dollar loses strength and falls to R $ 5.44
THE financial market rehearsed a recovery this Tuesday, 23, after a day of heavy losses with the intervention of Jair Bolsonaro (without a party) in charge of Petrobras. THE Ibovespa, main index of Brazilian Stock Exchange, closed with an increase of 2.27%, at 115,227 points, driven by the recovery of the oil company’s shares, which the day before were also responsible for the 4.9% fall in the market after a 20% drop. Ordinary papers (PETR3) registered an increase of 8.9%, while preferred papers (PETR4) rose 12.1%. The appreciation of Eletrobras with the expectation that the government will send a provisional privatization measure this week also gave new impetus to investors. Common shares (ELET3) grew 13%, compared to an increase of 10.8% for preferred shares (ELET6). The scenario also made the dollar lose strength against the real, down 0.21%, quoted at R $ 5.442. The currency hit a maximum of R $ 5.484, while the minimum did not exceed R $ 5.409. The dollar closed the day before with a 1.2% boost, at R $ 5.453.
The market remained apprehensive after the intervention of Jair Bolsonaro (without a party) in charge of Petrobras, which only on Monday lost R $ 75 billion in market value. On Friday, 19, the president announced the replacement of Roberto Castello Branco by General Joaquim Silva e Luna after a series of readjustments in gasoline and diesel prices. The administrative board of the state-owned company is meeting this Tuesday to decide the replacement, among other matters. Bolsonaro’s signal was seen by the market as interference on a company listed on the Stock Exchange, and accentuated the risk of a shift in the federal government’s economic policy. Bolsonaro again criticized the Petrobras this Tuesday when saying that “there is a lot wrong” in the state-owned company, and that “the new president is going to fix it.” In a conversation with supporters in front of the Palácio da Alvorada, Bolsonaro again denied that the request for change in command represents interference. “What did I interfere with Petrobras? Does anyone answer there? What did I say to lower the price? Nothing, zero, ”said the president, who also praised Silva and Luna. “You will see Petrobras as it will improve. Just like, if you have to make any changes, we will. ”
Still in the domestic news, investors continue to follow the negotiations for the return of emergency aid. At the end of the morning, the Minister of Economy, Paulo Guedes, immediately canceled the participation in an international event on the entry of Brazil to the Organization for Economic Cooperation and Development (OECD). According to the presenter of the event, the minister canceled his speech because he was Congress to deal with emergency issues related to reform agenda. The event was scheduled on Guedes’ official agenda for 11am. According to the organization, the minister warned about the cancellation 30 minutes before the start of the event. The minister’s agenda was updated with a meeting with the president of the Chamber of Deputies, Arhur Lira (PP-AL), at 1 pm.
Congressional leaders closed an agreement with the federal government to put the Proposed Emergency Constitution Amendment (PEC) to a vote next Thursday, 25. The text, which will present the clause that gives the loop for the resumption of the benefit, was delivered to leaders by the rapporteur, Senator Márcio Bittar (MDB-AC), this Friday. The expectation is that the PEC will proceed without major problems and be approved by March 3. The text must still pass the approval of the Chamber of Deputies. For Pacheco, the federal government should edit the provisional measure that releases the aid after the Senate procedures. there is a very clear tendency by the Chamber of Deputies in view of the importance of this for the country and to make emergency aid feasible, also to approve it in a time that is appropriate ”, he said.