In a more volatile week, the Ibovespa (IBOV) recorded a new drop this Thursday (29), pressured by foreigners and with investors eyeing the Brazilian elections.
The tourism sector was a negative highlight in the session, with Blue (BLUE4) and Goal (GOLL4) plummeting 8.79% and 8.17%, respectively.
According to Leandro Petrokas, research director and partner at Quantzed, in addition to global concerns, such as the conflict in Europe and between China and Taiwan, the coronavirus and monkeypox, investors seem to see several risks for airlines.
Petrokas highlights that, in seven trading sessions, Azul lost 20% of its market value.
“The market looks very carefully at companies in the aviation sector”, comments the specialist.
In addition to the tourism sector, the shares of e-commerce retailers ended the day under pressure, with Magazine Luiza (MGLU3) and Via (VIIA3) retreating by more than 6%. THE American (AMER3) plummeted 7.41%.
According to Petrokas, the downward movement in retail today reflects the risk of a global recession.
This is the same explanation for the drop in steelmakers on the trading floor, he adds.
“These are names directly related to economic activity that, in a recession scenario, are compromised. With this scenario of recession in the US, geopolitical uncertainty and increase in US interest rates, we have a natural risk of a slowdown in activity, which generates direct impacts on companies that depend properly on industrial activity and production”, explains the analyst.
Banks were the positive highlights of this Thursday, with Itau (ITUB4) advancing 1.49% and Bradesco (BBDC4) 0.76%.
Today’s session was about rotating riskier assets to more predictable companies.
“The risk of an election doesn’t seem to cost that much, because the scenario of victory for both Lula and Bolsonaro is already priced in”, assesses Petrokas.
The expert believes that there is a low probability that the elections will be decided in the first round. This week, polls by some institutes on voting intentions pointed to the possibility of former president Luiz Inácio Lula da Silva winning the presidential race on Sunday (2).
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
