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The Brazilian market Ibovespa rises, led by banks, in a session with low liquidity.

Gabriel Micillo•Tuesday, February 20, 2024•2 min read

The Brazilian market Ibovespa rises, led by banks, in a session with low liquidity.

The index started the day in the red, pressured by Vale, but ended the day with a slight increase.

In a session with reduced liquidity due to the President’s Day holiday in the United States, the Ibovespa fluctuated near stability for most of the trading session. It initially traded in the red, pressured by Vale, but ended the day with a slight increase, driven by gains in the financial sector. By the end of the day, the index rose by 0.24%, reaching 129,036 points.

By the end of the day, the index rose by 0.24%, reaching 129,036 points at intraday highs. At its lowest point, it touched 128,097 points. The financial volume traded during the session (until 6:30 PM) amounted to R$ 9.28 billion on the Ibovespa.

Without guidance from the American markets, but still with uncertainties regarding the monetary easing cycle in the US limiting investor movements, the Ibovespa started the day with a decline, pressured by Vale (which fell by 0.28% in the session) and its counterparts on a day of iron ore retreat.

In the afternoon, however, the index began to rise led by banks: Itaú PN rose by 1.10%, Bradesco PN increased by 1.26%, and Banco do Brasil ON advanced by 1.81%. Analysts at Bank of America stated in a recent report that they upgraded the local banking sector to “overweight” (exposure above consensus) due to an improving operational dynamic in the segment.

On the other hand, public finances, growth, external accounts, and exchange rates are relatively in good shape, valuations are more attractive than at the end of last year, and profits are reaching their lowest level. We see a benign situation: there are stable prospects for oil, China risks are already priced in, and most banks are expected to begin showing better operational trends.

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Gabriel Micillo
Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.
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