Ibovespa recovers on the day, with improved results abroad and a further drop in the basic Selic interest rate of 0.50 points.
This Wednesday, the increase in the circulation of dollars in the world supported stock markets in the black. After adjustments, the Ibovespa closed at a high of 1.60%, at 107,224 points. At the low, it reached 105,042 (-0.47%) points. The high reached 107,809 (2,15%).
The recovery of the Ibovespa today was slowed down, however, by the strong losses of IRB ON. At the worst moment of the day, when the reinsurer's shares fell by 41.75%, at a minimum price of R$ 16.31, the IRB contributed negatively to the Ibovespa, with 619 points. At closing, there were 473 points, according to the Valor Data survey.
B3, the main index of the Brazilian stock exchange, ended the day on a high note, with the most favorable climate for risky assets abroad. Amid many hopes that central banks will act to ease the negative pressures of the coronavirus outbreak. As well as the result of primary elections in the United States.
highlights of the day
Breaking a new record, the dollar closed at a high of 1.51% to R$ 4.57 this Wednesday. On the Brazilian stock exchange, the highlights were the shares of Vale which advanced above 5% and Petrobras which rose around 2.15%, according to preliminary data.
drop in IRB
After Warren Buffett's Berkshire Hathaway says it is not a shareholder in the Brazilian reinsurer. Denying information that circulated in the media in recent days, IRB Brasil plummeted more than 30%. The company has already accumulated a drop of around 40% in 2020.
"Berkshire Hathaway is not currently a shareholder of the IRB, has never been a shareholder of the IRB and has no intention of becoming a shareholder of the IRB," the investment firm said in a statement, citing the various reports that have circulated in the media recently on the matter.
The Ibovespa should remain quite volatile according to analysts. Suffering the effects of economic developments related to the coronavirus.
Faced with concerns about the effects on the Brazilian economy, expectations that the Central Bank will reduce the Selic rate are also in the crosshairs. At the moment at 4,25%. The Bank stated the day before that the next two weeks will allow for a more precise assessment to be made.
