Ibovespa rises 1.3% on the outside and expectations for Petrobras’ results; dollar renews historic high

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SÃO PAULO – Ibovespa closed sharply higher on Wednesday (19), driven by the performance of Petrobras shares (PETR3; PETR4) before the disclosure of the company’s results in the fourth quarter. The expectation is solid numbers, guided by the state’s production data.

Abroad, the day was also positive, with markets looking forward to further stimulus in China to help fight the coronavirus outbreak. Investors were also attentive to the minutes of the last meeting of the Federal Open Market Committee (Fomc), which showed a broad discussion of how to make the United States reach the 2% inflation target per year and how to adapt the policy to combat risks to financial stability.

They also helped the American stock market to climb the strong data of the American real estate sector and the increase of 0.5% of the Producer Price Index (PPI) against expectations of 0.1% in the median of the Bloomberg consensus.

The Ibovespa ended the day with an increase of 1.34%, to 116,517 points. The financial volume traded was R $ 23.398 billion.

Meanwhile, the commercial dollar increased by 0.18%, quoted at R $ 4.365 on the purchase and R $ 4.3657 on the sale, renewing its historic high. The future dollar for March, in turn, advanced 0.18%, to R $ 4.3655.

The day before, Roberto Campos Neto, president of the Central Bank, stated that the monetary authority intervenes in the exchange rate when it sees liquidity problems or when it realizes that the real is at odds with peers. According to him, the exchange rate is fluctuating and is separate from monetary policy.

Despite the high dollar, the pressured exchange rate is not reflected in inflation or in a general deterioration of Brazilian assets; the CDS – a kind of insurance against defaults on public debt – in the country yesterday closed at 92 points, in the sixth consecutive low and renewing the lowest level since 2010.

Among future interest rates, the contract maturing in January 2022 fell by six basis points, to 4.66%, while the contract maturing in January 2023 fell by five points to 5.23%, followed by a three-year drop. basis points of maturity in January 2025, at 5.97%.

The day was marked by the analysis of the released balance sheets, such as IRB Brasil RE (IRBR3), EDP, Energias do Brasil (ENBR3) and Gerdau (GGBR4), and also by the expectation of the fourth quarter numbers of major companies today. In addition to Petrobras, Marfrig (MRFG3), RD ([ativo=RADL3), Pão de Açúcar ([ativo=PCAR4]), among others.

Meanwhile, abroad, Asian stock exchanges closed higher, with the exception of Shanghai, which fell 0.32%. Markets are eyeing the meeting of the People’s Bank of China, which may, at 10:30 pm on Wednesday (Brasília time) decide another cut in interest rates to stimulate the economy hit by the coronavirus outbreak.

The death toll in China from the coronavirus has exceeded 2,000, while Japan has begun releasing passengers from a quarantined cruise ship. Hubei Province, at the center of the outbreak, reported the fewest additional cases since it changed its method of counting infections last week.

Chinese oil refineries have cut production even further to deal with weak demand. In the commodities market, brent oil rises after U.S. sanctions on Russia and the Libyan conflict shifted the focus to supply threats.

Politics

The President of the Republic, Jair Bolsonaro, said that Economy Minister Paulo Guedes will remain until the end of his term. The statement was made days after Guedes called public servants “parasites” that would be housed in the “host” that would be the federal government. Rumors about the departure of Guedes started circulating this week.

“If Guedes has occasional problems and is attacked, it is much more because of his competence than because of possible slips,” Bolsonaro said to the newspaper O Estado de S. Paulo.

It is worth mentioning that Bolsonaro canceled a public ceremony to launch the Brasil Mais program to meet with the Minister of Economy and other ministers and close the last details of the administrative reform, said spokesman Otavio Rêgo Barros.

At the state level, the Legislative Assembly of the State of São Paulo approved last night the project for the reform of the social security system for public servants. Before proceeding to the sanction of Governor João Doria (PSDB), the bill must be voted on in the second round. The PEC establishes a minimum retirement age of 65 years for men and 62 years for women.

Corporate news

The reinsurer IRB Brasil RE (IRBR3) and EDP Brasil (ENBR3) published balance sheets at dawn today. IRB Brasil RE reported a net profit of R $ 1.79 billion in 2019, an expansion of 44.7% over 2018, when it profited R $ 1.21 billion. The company said it closed 2019 with net cash of R $ 35.9 million – a 16.8% drop over the end of the previous year.

IRB Brasil RE states that its consolidated assets grew 7.7% in 2019 to R $ 17.1 billion. EDP ​​Brasil reported a net profit of R $ 1.48 billion in 2019, a result slightly higher than the profit obtained of R $ 1.41 billion in 2018.

Higher highs

Active% ChangePrice R$)
WEGE38.5011248.5
VVAR36.2124215.9
GOAU45.1867210.14
JBSS34.2801626.8
B3SA33.911653.13

Higher casualties

Active% ChangePrice R$)
HGTX3-2.8838724.92
COGN3-2.1929811.15
BRDT3-1.1562629.92
CRFB3-1.0889321.8
UGPA3-0.9958523.86

Engie Brasil, Iguatemi and Banestes published balance sheets last night. JBS announced the acquisition of five refrigerators and the Ledbetter brand in the United States, for R $ 1 billion. Weg announced that it will pay more than R $ 350 million to shareholders.

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