BRAZIL: Investors Ignore Charges Against Temer And Stocks Rise To New Record – Markets Insider

(RTTNews) – Ibovespa, the benchmark stock market index in Brazil, rose 1.47% to 75,756.51 points on Friday, setting a fresh record closing high as investors bet that the new criminal complaint against President Michel Temer is too weak to disrupt their positive expectations on the Brazilian economy recovery.

In a week marked by news on the political scene and four days of record turnover, the Ibovespa advanced 3.54%.

Analysts pointed out that external factors, such as the launch of another missile by North Korea and U.S. economic data released today, did not hit the Brazilian stock market.

The good mood is supported by better indicators of activity, amid a scenario of lower inflation and interest rates in Brazil. Among the largest increases were blue-chips such as Vale (VALE3 +0.54%), Itaú Unibanco (ITUB4 +1.87%) and Bradesco (BBDC4 +2.13%).

The locally traded U.S. dollar closed steady, at R$ 3,1160, under pressure from the central bank exchange swap operation, neutralized by the inflow of the currency into the Brazil, as well as by the market’s optimism regarding Temer’s strength to resist to a new criminal complaint against him.

“The new complaint brings a point of uncertainty regarding what the voting schedule of the pension reform will be, but there is no caution. The market follows a very positive flow of foreign and local investors,” said Luis Gustavo Pereira, an analyst Guide Investimentos.

For Alvaro Bandeira, the chief economist at Home Broker Modalmais, the expiration of stock options scheduled for Monday also brought a further boost to the Ibovespa and its turnover.

The market players’ assessment is that the good momentum should continue in the short term, although there are still some political and external risks. Bandeira sees the Ibovespa coming close to 77,000-78,000 points “reasonably fast.”

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