Ibovespa, the benchmark stock market index in Brazil, rose 0.54% Friday, closing at 67,358.58 points, with investors assessing the real possibility of a conflict between the United States and North Korea. BRF and Kroton shares rose by more than 5% and helped the index end higher. In the week, the Ibovespa accumulated a 0.74% increase.
“Geopolitical tensions are being seen as more talk than action. Yesterday the index ended up taking profits and today it opened space to rise,” said DNAinvest partner Leonardo Ramos. Meanwhile, the last day to swap common shares for Vale’s preferred shares impacted the preferred shares, which fell 1.44%.
According to Eleven Research partner Rafael Bevilacqua, the business news coming from BRF and Kroton kept the market on the rise. “Kroton is the preferred stock of local investors,” he said.
BRF shares rose 5.25%, and Kroton shares increased by 5.32%. Petrobras’ shares fell 2.19%, impacted by the decline in second-quarter profit. Bevilacqua points out that the company’s operating results, however, were “strong,” indicating that the stock may rise again next week.
In Ramos’s opinion, the Ibovespa may rise again on Monday if iron ore prices continue to increase. Bevilacqua sees the scenario as rising if tensions between the United States and North Korea continue to cool.
Meanwhile, the locally traded US dollar closed slightly down in response to a lower than expected inflation in the United States. The geopolitical tension stemming mainly from the exchange of threats between North Korea and the US government and the prospect of loosening the fiscal target in Brazil have limited losses and should prompt the dollar to begin next week near stability. The US currency declined 0.03%, to R$ 3.1750.
The material has been provided by InstaForex Company – www.instaforex.com