Cielo, Hapvida, Magalu: 10 biggest Ibovespa highs and lows in May
Index returns to the positive field and rises 3% in the month; in the year, up 6% in the year
May was a month of recovery for the positive trajectory of the Ibovespa, which increased by 3%. The Brazilian market continues to keep an eye on the effects of high interest rates on United Statesbut managed to move from the falls of Wall Street to surf positive winds coming from the China.
“From the second half of the month onwards, there was an improvement in expectations about the heating up of the Chinese service sector, which showed a higher-than-expected number and led to the appreciation of the commodities”, said Charo Alves specialist at Valor Investimentos.
With a large share of the Ibovespa, companies associated with commodities, such as Vale and Petrobras, helped to boost the index’s appreciation. “The banking sector also took advantage of the high moment to readjust the difference between price and profit”, evaluated Alves. The biggest recovery in the sector came from the Bradescowhich had gains of 14% in the month.
The biggest rise, however, was again with the shares of sky. The company has followed a trend of appreciation since the beginning of the year, intensified by the results of the 1st quarter, when Cielo had a net profit of R$ 184.6 million. The result surprised, and analysts revised their forecasts. After the balance sheet, JPMorgan recommended the purchase of Cielo shares for the first time since 2016.
At the opposite end, stocks linked to retail and the technology sector were once again among the most penalized. “These are companies that suffered a lot at the beginning of the month with the concern that interest rates would rise more than expected. There is difficulty in granting credit, in dealing with leverage”, evaluated Gustavo Cruz, strategist at RB Investimentos.
The biggest drop was with the hapvida, which disappointed investors with its first-quarter result. One of the main disappointments was the Ebitda (earnings before interest, depreciation and amortization) of BRL 206.6 million – 64.5% below the Bloomberg market consensus, which was BRL 583.9 million.