By Paula Arend Laier

SAO PAULO (Reuters) - The Ibovespa index was weak on Friday, still affected by concerns about the fiscal scenario after financial agents were disappointed with fiscal measures announced by the federal government this week.

So far this week, the Ibovespa has accumulated a drop of 3.58%, which if confirmed will be the biggest weekly percentage loss since December 2022. In the month, the drop totaled 4.02%.

At around 11:50 am, the Ibovespa was down 0.09%, at 124,502.39 points, with the 2% rise in Vale shares offering a relevant counterweight, amid the announcement of interest on equity (JCP) and the rise in iron ore prices abroad.

The financial volume in trading this Friday, when Wall Street will have a reduced session, totaled 9.91 billion reais.

In a report sent to clients earlier, the XP (BVMF:XPBR31) team reinforced that, even under the rules proposed in the spending review package detailed the day before, the sustainability of the fiscal framework will face challenges in the coming years.

The dollar also continued to advance against the real in this trading session, renewing historical highs, as did the rates of DI contracts.

In the United States, stock markets had a positive bias as they returned from the holiday, in a session that will be shorter in duration, while yields on US Treasury bonds were trading lower.

 

HIGHLIGHTS

- LOCALIZA ON (BVMF:RENT3) plunged 6.1%, affected by the rise in DI rates and prospects of higher interest rates for longer in Brazil.

- MRV&CO ON (BVMF:MRVE3) fell 4.34%, with the sector still pressured by the upward movement in the interest rate curve, extending the drop in the week to more than 20%. Of the construction companies on the Ibovespa, EZTEC (BVMF:EZTC3) ON lost 2.8% and CYRELA ON (BVMF:CYRE3) fell 2.87%. The real estate sector index registered a decline of 3%.

- ALLOS ON fell 3.42%, also against the backdrop of a report by JPMorgan (NYSE:JPM) cutting the recommendation for the stock, as well as for Multiplan and Iguatemi (BVMF:IGTI11) shares, to "neutral", assessing that higher interest rates will continue to punish the shopping center sector. MULTIPLAN ON (BVMF:MULT3) was trading down 2.35% and IGUATEMI UNIT fell 2.64%.

- MINERVA ON (BVMF:BEEF3) advanced 6.8%, with companies in the sector among the positive highlights, since they tend to benefit from the appreciation of the dollar against the real, which in this session renewed historical highs, reaching 6.11 reais. JBS ON (BVMF:JBSS3) rose 3.79%, MARFRIG ON (BVMF:MRFG3) appreciated 1.85% and BRF ON (BVMF:BRFS3) recorded a rise of 1.97%.

- VALE ON (BVMF:VALE3) was trading up 2.19%, helped by the rise in iron ore futures abroad. The mining company also announced that its board of directors approved the distribution of R$0.52 in JCP per share, with payment scheduled for March next year. The cut-off date is December 11.

- ITAÚ UNIBANCO PN (BVMF:ITUB4) fell 1.44%, with the sector still pressured by recent government announcements, including higher taxes on higher incomes, which some analysts see as a negative for traditional banks and investment platforms. BTG PACTUAL (BVMF:BPAC11) UNIT fell 3.66% and the financial sector index on B3 (BVMF:B3SA3) lost 1.69%.

- PETROBRAS PN (BVMF:PETR4) rose 1.17%, out of step with the movement of oil abroad, where the barrel of Brent was trading close to stability. #ibovespa