Brazil's main equity index closed lower on Tuesday as sectoral weakness in Electric Power, Public Utilities and Industrials pushed the market down. The Bovespa ended trading in Sao Paulo down 0.45% on the day.
Among individual stocks, MRV Engenharia e Participacoes SA (BVMF:MRVE3) was the session's top performer on the Bovespa, finishing up 2.32% - a gain of 0.12 points to close at 5.24. Raia Drogasil SA (BVMF:RADL3) also posted gains, rising 2.20% or 0.38 points to end at 17.68. Telefonica Brasil SA (BVMF:VIVT3) added 1.33%, or 0.44 points, to close at 33.46.
Decliners included several large moves to the downside. Braskem SA (BVMF:BRKM5) fell 9.23%, or 0.86 points, to finish at 8.39. Magazine Luiza SA (BVMF:MGLU3) declined 6.54% - a 0.35 point drop - to end the session at 5.00, a move that took the stock to 52-week lows. Usinas Siderurgicas de Minas Gerais SA USIMINAS Pref (BVMF:USIM5) was down 6.20% or 0.67 points, closing at 10.08.
Breadth on the B3 showed more decliners than advancers, with 524 stocks falling versus 414 gaining, while 27 issues finished unchanged.
Market volatility as measured by the CBOE Brazil Etf Volatility fell 2.68% to 30.47, signaling a slight easing in implied option volatility on the Bovespa.
Commodities and FX moved alongside equities. Gold futures for August delivery were up 0.07%, a rise of 2.97, to $4,354.57 a troy ounce. Crude oil for July delivery lost 5.21% - down 4.21 - to settle at $76.54 a barrel. The September US coffee C contract climbed 5.56% or 14.40 to trade at $273.60.
On currency crosses, USD/BRL was higher by 0.58% at 5.09, while EUR/BRL rose 0.65% to 5.92. The US Dollar Index Futures slipped 0.08% to 99.30.
Separately, promotional material accompanying the session commentary highlighted a trading tool focused on identifying setups on individual stocks, referencing BRKM5 specifically. The text described chart-analysis technology that can scan charts, identify patterns before they play out and deliver complete setups including entry and exit in under 60 seconds, and noted investor reports of a high accuracy rate, including on smaller-cap names.
Market takeaway - The session closed with the weight of declines in utilities, electric power and industrial names outweighing gains among select retailers and property developers. Volume and breadth metrics reflected a market with more falling issues than rising ones.