Brazilian equities finished the trading session on Tuesday with modest gains, led by advances in consumer, industrial and basic materials stocks. At the close in Sao Paulo the benchmark Bovespa index was up 0.62%.
Among individual names, Ambev SA (BVMF:ABEV3) was the session's strongest performer, surging 15.30% to close at 16.63. Steelmakers recorded meaningful gains as well: Usinas Siderurgicas de Minas Gerais SA - USIMINAS Pref (BVMF:USIM5) rose 5.10% to 8.62 and Gerdau SA Pref (BVMF:GGBR4) added 4.86% to finish at 23.72.
On the downside, Braskem SA (BVMF:BRKM5) led decliners with a 2.00% drop to 9.32 at the close. Meatpacker Marfrig Global Foods (BVMF:MBRF3) declined 1.94% to 17.72, and electrical equipment manufacturer WEG SA (BVMF:WEGE3) fell 1.85% to 43.50.
Market breadth was tilted toward weaker names: 508 stocks fell while 468 rose on the B3 exchange, and 31 ended unchanged. Notable record moves included Ambev reaching three-year highs with its 15.30% jump, and Usiminas climbing to 52-week highs after its 5.10% advance.
Investor sentiment as measured by options activity showed a pickup in implied volatility on Bovespa contracts - the CBOE Brazil Etf Volatility index rose 3.92% to 32.62.
Commodity markets moved unevenly during the session. Gold futures for June delivery gained 0.82% to $4,570.51 a troy ounce. By contrast, crude oil for June delivery slid 3.55% to $102.64 a barrel. The July US coffee C contract inched higher, up 1.33% to $289.30.
Foreign-exchange rates against the real also shifted: the USD/BRL pair weakened 1.17% to 4.91, while EUR/BRL fell 1.10% to 5.77. The US Dollar Index futures were slightly firmer, up 0.09% at 98.36.
Market context
- Broad-based gains were concentrated in consumer, industrials and basic materials sectors, supporting the Bovespa's 0.62% rise.
- Large-cap movements were mixed, with Ambev posting a significant jump and several industrial and materials names rising, while select chemical, food and manufacturing stocks slipped.
- Implied volatility on Bovespa options ticked higher, reflecting a modest rise in near-term uncertainty among option traders.
Key statistics
- Bovespa close: +0.62%.
- Top gainers: ABEV3 +15.30% to 16.63; USIM5 +5.10% to 8.62; GGBR4 +4.86% to 23.72.
- Top decliners: BRKM5 -2.00% to 9.32; MBRF3 -1.94% to 17.72; WEGE3 -1.85% to 43.50.
- CBOE Brazil Etf Volatility: +3.92% to 32.62.
- Commodities and FX: Gold (Jun) +0.82% to $4,570.51/oz; Crude (Jun) -3.55% to $102.64/bbl; Coffee (Jul) +1.33% to $289.30; USD/BRL -1.17% to 4.91; EUR/BRL -1.10% to 5.77; US Dollar Index futures +0.09% to 98.36.