Ibovespa recovers today, with improved results abroad and a new drop in the Selic basic interest rate, of 0.50 points.
On Wednesday, the increase in dollar circulation worldwide kept stock markets in the black. After adjustments, the Ibovespa index closed up 1.60%, at 107,224 points. At its lowest point, it hit 105,042 (-0.47%) points. Its highest point reached 107,809 (2.15%).
The Ibovespa's recovery today was slowed, however, by heavy losses in IRB ON. At the lowest point of the day, when the reinsurer's shares fell 41.75%, reaching a low of R$ 16.31, IRB contributed negatively to the Ibovespa, with 619 points. At the close, it was 473 points, according to the Valor Data survey.
B3, the main index of the Brazilian stock exchange, closed the day higher, with a more favorable climate for risk assets abroad. Amid widespread expectations that central banks will act to mitigate the negative pressures of the coronavirus outbreak, as well as the outcome of the primary elections in the United States.
Highlights of the day
Setting a new record, the dollar closed higher by 1.51% to R$ 4.57 this Wednesday. On the Brazilian stock exchange, the highlights were Vale shares, which rose above 5%, and Petrobras, which rose around 2.15%, according to preliminary data.
Fall of the IRB
After Warren Buffett's Berkshire Hathaway said it was not a shareholder in the Brazilian reinsurer. Denying reports circulating in the media in recent days, IRB Brasil plummeted more than 30%. The company has already accumulated a decline of around 40% in 2020.
“Berkshire Hathaway is not currently a shareholder of IRB, has never been a shareholder of IRB, and has no intention of becoming a shareholder of IRB,” the investment firm said in a statement, citing the various reports that have circulated in the media recently on the matter.
Analysts say the Ibovespa is expected to remain highly volatile, suffering the effects of economic developments related to the coronavirus.
Amid concerns about the impact on Brazil's economy, expectations that the Central Bank will cut the Selic rate are also in the spotlight. Currently, it's at 4.25%. The bank stated the day before that the next two weeks will allow for a more accurate assessment.