Tuesday, 02 January 2024 12:17 GMT

Brazil's Stock Market Climbs As Corporate Winners Outperform Global Lows


(MENAFN- The Rio Times) The Brazilian B3 (Ibovespa) closed at 145,865 points on September 19, 2025, after gaining 0.25% during the previous session.

The index's rise over the past month now stands at 8.3%, supported by improved domestic outlook and revived risk appetite.

In the last 24 hours, trading volumes held steady as local equities followed a mixed performance in global markets.

Global market signals remained cautious. Wall Street major indices retreated overnight after the Federal Reserve kept U.S. rates on hold but struck a more hawkish tone about future monetary policy.

Asian stocks traded lower, and Europe's main indices opened in negative territory. The firmer U.S. dollar capped further emerging-market gains by drawing capital back toward U.S. assets.

Ibovespa's biggest winners were visible in the consumer and healthcare spaces. Natura & Co jumped 16.5%, leading the day after announcing better-than-expected quarterly results and a new cost-cutting plan.

Motiva Infraestrutura rose 2.3% to a five-year high, lifted by infrastructure investment optimism. Hypera advanced 2.1% on higher margins.

On the losing side, Usiminas slid 5.4% as steel demand projections dimmed. Azzas fell 3.4%, and Grupo Vamos lost 3.0% on profit-taking and sector headwinds.


Brazil's Stock Market Climbs as Corporate Winners Outperform Global Lows
Technical analysis places the daily RSI near 52 (neutral), with the MACD modestly negative and several mid-term moving averages (50, 100, 200) still signaling support below current prices.

Volatility, as measured by the ATR, has stayed subdued, reflecting some consolidation after recent highs.

On the four-hour chart, oscillators showed the market edging toward short-term overbought levels (stochastic readings in the upper 90s) but without yet triggering widespread selling.

ETF flows reflected caution. Fund trackers reported significant outflows from Brazil-focused equity funds, consistent with global de-risking.

Market makers at B3 helped provide stability, ensuring adequate liquidity through active bid/offer presence and tight spreads.

Brazil's performance contrasted with regional peers. While Ibovespa ticked higher, Argentina's Merval saw a steep drop and Mexico's IPC slipped modestly, highlighting Brazil's relative resilience.

Major contributors to B3's gains include optimism around corporate earnings, domestic consumption, and select infrastructure names.

In summary, the Brazilian stock market's near-term direction hinges on global central bank policies, U.S. dollar strength, and local earnings data.

Despite sector rotation and some profit-taking, the B3 managed to close the latest session at historic highs, supported by standout performances from high-profile corporates, steady technicals, and active local liquidity provision.

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