Ibovespa, the benchmark stock index in Brazil, fell 0.53%, to 66,777.13 points Thursday, even after the House of Representatives shielded President Michel Temer from being prosecuted for corruption. Investors believed that he would have more support from lawmakers, and started to worry about the prospects of the pension reform bill.
Temer amassed 264 votes in favor of dismissing a corruption charge against him – less than the almost 300 predicted. “It is a mix of profit-taking and disappointment due to the number of votes for the government. It was much smaller than the 290 expected,” said Rogério Freitas, an analyst at Florença Investimentos.
Ari Santos, the chief operating officer at H.Commcor, noted that the market used the scoreboard as an excuse to capitalize the recent stock market gains.
Meanwhile, both the preferred shares of Petrobras and Vale fell (respectively by 1.48% and 1.03%), tracking the price of commodities in the foreign market. Cielo’s shares -3.11% continued to reflect pessimism with the second quarter figures released yesterday, while Itaú Unibanco’s shares lost 0.23%.
The locally traded US dollar ended the trading session on the downside (-0.22%, at R$ 3.1140), weighed down by the greenback’s weakness abroad.
Friday, data on job creation in the United States should draw investors’ attention, but according to Santos and Freitas, the trend may be a new day of profit-taking.