SÃO PAULO – The start of the session on Wednesday (30) is positive for Ibovespa after the sharp falls of the last sessions.
The highlights are CSN’s shares (CSNA3), with gains of around 6% after being recommended by Credit Suisse, which highlighted good prospects for iron ore, followed by steelmakers Usiminas (USIM5) and Gerdau ( GGBR4).
Vale’s shares (VALE3) are also advancing. It is worth mentioning the movement of iron ore futures, which jumped on Wednesday, with the reference contract in China shooting 5% after an outbreak of coronavirus in a bulk carrier in the important port of Hedland, in Australia, having raised fears about supply problems.
Iron ore on the Dalian Chinese stock exchange DCIOcv1 closed at its highest level since September 21, at 809 yuan ($ 118.88) per ton. It advanced 16.6% this quarter, in the fourth consecutive quarter of earnings.
On the corporate front, the market today follows the judgment of the lawsuit on the sale of Petrobras refineries (PETR3; PETR4) without bidding or endorsement by the National Congress; the trial may extend until the next session. According to information from Reuters, the Jair Bolsonaro government set up an operation involving top-ranking figures to try to ensure a victory for Petrobras. The move appears to help the outcome of the trial, which is expected to have a tight score in favor of the government, according to three sources with knowledge of the matter heard by the agency. Shares are up more than 1%, also after falling. WTI increased 0.25% and brent lost 0.93%.
IRB (IRBR3) also has a new earnings session; the reinsurer received the “brAAA” credit rating from Standard & Poor’s, with a stable outlook.
The session also marks the debut of Boa Vista’s shares (BOAS3) on B3. Check out the highlights:
Boa Vista (BOAS3)
Boa Vista shares debut at B3 on the rise. The company’s initial public offering (IPO) was priced at R $ 12.20, with funding of R $ 2.17 billion.
Boa Vista is a credit information company, in addition to managing databases and transactions between companies, founded in 2010 by the Associação Comercial de São Paulo (ACSP).
In the same year, the Paraná Commercial Association, the Rio de Janeiro Tenant Directors Club and the Porto Alegre Tenant Directors Chamber purchased a 6.9% stake in the company’s share capital.
At the end of October of that year, TMG Capital, a private equity fund, bought a 25% stake, which was later raised to 30%, assuming leadership and management. In 2017, a system to minimize costs and share data with strategic partners was implemented.
In addition to Boa Vista, the market is explored in the country by the sector leader, Serasa Experian, and by Quod, whose partners are the five largest Brazilian banks.
The IPO process took place after the positive registration reform came into force in Brazil. Through it, everyone will be part of a unified credit history system – unless they require exclusion.
Boa Vista saw revenue increase between 2015 and 2019, with an average annual growth rate (CAGR) of 9%.
The Supreme Federal Court (STF) today judges an action that seeks to prevent the sale of Petrobras refineries without bidding or endorsement by the National Congress. At stake is the state’s plan to privatize eight refining units, which are part of a list of assets for divestment. Petrobras has been cutting investments and going out of business in different areas, with the aim of reducing its debt and focusing efforts on the pre-salt layer. Check out what to expect by clicking here.
In compliance with a determination by the Administrative Council for the Defense of Competition (Cade), Petrobras said it will waive all the entry capacities of the receiving points of São Sebastião do Passé and São Francisco do Conde, in Bahia, for the duration of the lease the LNG Regasification Terminal in Bahia.
In addition, the company informed the start of the non-binding phase regarding the sale of its stakes in Polo Norte Capixaba, in Espírito Santo.
American Stores (LAME4)
Lojas Americanas will issue US $ 500 million in bonds, through its Luxembourg-based subsidiary, JSM Global. According to the company, the initial intention was to issue US $ 350 million, but favorable market conditions and investor demand motivated the increase in value. The bonds will pay remuneration of 4.75% per year, and the term of the bonds is ten years.
Credit Suisse raised CSN’s recommendation for Outperform (above the market average) and maintained Vale as its top pick in the mining sector due to its more attractive valuation. At the moment, Vale operates at a multiple of 2 times EV (Company value) / EBITDA of 2021, while CSN operates 3.9 times. In other words, CSN is more valued.
In a report, Credit explained that the iron ore market surprised this year, with significant reductions in supply, mainly in Brazil. At the same time, the recovery in steel demand in China has accelerated, causing a deficit in the market.
Going forward, firm demand in China is expected to keep prices high until 2022, according to the bank. “Supply surpluses will only be significant as of 2023,” he said. As a result, the price of iron ore should be US $ 105 per ton in 2021, which allows very solid Free Cash Flow yields for the sector’s shares (around 20%).
Camil Alimentos approved an issue of simple debentures, in the total amount of R $ 350 million. The offer will be made with restricted efforts (CVM 476), that is, aimed at a restricted group of qualified investors. With a unit value of R $ 1,000, the debentures will pay 100% of the CDI plus 2.70% per year. The term will be five years. The funds will be used to purchase “in natura” rice directly from rural producers and / or cooperatives of rural producers, in a volume corresponding to R $ 200 million. The other R $ 150 million will be used to reinforce cash.
The BRK Ambiental group, which has Canadian investor Brookfield among its investors, on Wednesday won the auction of water distribution and sewage services in the metropolitan region of Maceió, with an offer of approximately R $ 2 billion against the minimum value. of the R $ 15.1 million dispute. BRK surpassed six other offers, including from rivals such as Aegea, which offered R $ 1.21 billion.
The company now assumes responsibility for the water distribution and sewage collection of 1.5 million inhabitants in 13 cities in Greater Maceió.
The auction was the first held since the approval of the new basic sanitation framework this year.
On this, the vote to analyze Jair Bolsonaro’s vetoes on the legal framework for sanitation, which could happen today, has been postponed. See more about the importance of the themes by clicking here.
After suspending slaughterhouse clearance processes due to Covid-19, China may resume meat export endorsements to new South American units later this year, according to Reuters. The information was given by the president of Marfrig’s South American operation, Miguel Gularte. “New qualifications are expected for the second half of 2020 for Brazil and Argentina,” said the executive during an event promoted by XP Investimentos. The last round of Chinese qualifications for new slaughterhouses in Brazil took place in the second half of 2019.
The Directing Council of the State Privatization Program recommended the governor of the state of São Paulo to authorize the Finance and Planning Secretariat to hire studies and services necessary for the sale of shares owned by the state public administration at the Metropolitan Water and Energy Company (EMAE) . The information was disclosed by the company in a material fact.
Ray Drogasil (RADL3)
Raia Drogasil expects to open 240 stores a year between 2021 and 2022. According to the company, the projections are based on the company’s past experience, in view of its expansion strategy and its financial capacity to support investments.
According to Bradesco BBI, the announcement signals that the company intends to maintain its current strategy. Although each year causes a dilution in the growth capacity, it is a demonstration that the company still has the capacity to maintain an accelerated pace of expansion. In a report, BBI said that there should not be a specific growth focus in any region. In other words, the advance should be spread across the country. “This is what has happened in recent years and should continue. The bank maintained a neutral recommendation and a target price of R $ 23.40.
IRB-Brasil Resseguros reported that the risk rating agency Standard & Poor’s Global Ratings assigned the IRB Brasil RE issuer credit rating of “brAAA” on the National Brazil scale. The outlook is stable.
Locaweb announced the purchase of Etus Social Network Brasil, which works with social networks, for R $ 18.95 million. According to the company, Etus operates through a subscription model for its customers. The purpose of the acquisition is to offer an ecosystem to support customers in the process of digitizing their business.
The government is willing to hear suggestions from Congress and make changes to Eletrobras’ capitalization project to make the process feasible, said yesterday the executive secretary of the Ministry of Mines and Energy, Marisete Pereira, according to information from Valor Econômico. According to her, the portfolio is “open doors” to receive parliamentarians and clarify doubts about the privatization of the state-owned company, which remains among the priorities of the government’s agenda.
Itaú BBA stated that the purchase of Studos by Arco is positive for the company, as it strengthens the company’s technology and innovation portfolio. Studos Software provides content and digital learning solutions. In addition, according to BBA, Studos has a solid growth record. BBA has a Market Perform rating (in line with the market) for Arco’s role, and a target price of $ 57 for 2020.
(With Reuters, Bloomberg and Agência Estado)
Operation Stock Pickers: free series explains how you can join and build a well-paid career in the investment market