Stock Markets January 23, 2026

Brazilian Stocks Close Upward, Bovespa Hits New Record

Financials, real estate, and basic materials drive Bovespa's 2.02% gain at Friday's close

By Leila Farooq
Brazilian Stocks Close Upward, Bovespa Hits New Record

Brazil's stock market advanced on Friday as the Bovespa index climbed 2.02% to reach an all-time high, buoyed by strong performances in the financials, real estate, and basic materials sectors. Key companies saw significant gains, while a smaller group of stocks experienced declines. Market volatility, commodity prices, and currency movements also reflected notable changes during the trading session.

Key Points

  • The Bovespa index finished 2.02% higher, reaching a new record closing level, primarily driven by strength in financials, real estate, and basic materials sectors.
  • Top gainers include Braskem SA (+9.15%), Companhia Siderurgica Nacional (+5.77%), and Petroleo Brasileiro SA PN (+5.24%), highlighting robust investor interest in chemical, steel, and oil industries.
  • Increased implied volatility measured by the CBOE Brazil ETF Volatility index suggests rising market uncertainty despite the positive market close.

In the latest trading session in São Paulo, Brazil's main stock index, the Bovespa, ended the day with a 2.02% increase, setting a new record closing level. This advance was prominently supported by substantial gains in the financials, real estate, and basic materials sectors, which collectively bolstered investor sentiment and overall market performance.

Leading the day's gains was Braskem SA (BVMF:BRKM5), which surged 9.15%, closing at 9.42 units after adding 0.79 points. Companhia Siderúrgica Nacional (BVMF:CSNA3) followed, ending 5.77% higher at 10.09 units with a 0.55-point increase. Petroleo Brasileiro SA PN (BVMF:PETR4) also posted a notable rise, climbing 5.24% or 1.76 points to finish at 35.34 units.

On the downside, Vivara Participacoes SA (BVMF:VIVA3) experienced the steepest decline among major laggards, dropping 4.05% or 1.21 points to close at 28.65. Companhia Brasileira De Distribuicao (BVMF:PCAR3) retreated by 2.06% or 0.08 points, finishing at 3.81 units, while Hapvida Participacoes e Investimentos (BVMF:HAPV3) saw a 1.23% loss, ending the session at 13.62 units.

Market breadth favored advancing stocks, with 605 issues rising compared to 340 that declined and 54 remaining unchanged on the B3 Stock Exchange. This positive dynamic reflected investor preference during the session.

Volatility in the options market, as measured by the CBOE Brazil ETF Volatility index, rose sharply by 12.29% to 30.33, marking a one-month high in implied market uncertainty.

Commodity markets also showed strength, with February Gold Futures climbing 1.33% to $4,978.69 per troy ounce and March Crude Oil futures ascending 3.00% to $61.14 per barrel. Additionally, March US coffee contracts increased 1.08% to $351.45. Currency trends included a near-flat U.S. dollar against the Brazilian real at 5.29 and a 0.56% appreciation of the euro to 6.25 real.

The U.S. Dollar Index futures weakened by 0.85%, closing at 97.35, indicating some softening in the dollar against a basket of currencies.

Risks

  • Elevated market volatility, as shown by a 12.29% rise in the CBOE Brazil ETF Volatility index, introduces potential uncertainty impacting investor decisions across all sectors.
  • Declines in select stocks such as Vivara Participacoes SA (-4.05%) and Companhia Brasileira De Distribuicao (-2.06%) highlight uneven sector performance, particularly in luxury goods and retail.
  • Currency fluctuations, including near stability of USD/BRL and a slight rise in EUR/BRL, represent exchange rate risks that may affect import/export businesses and commodity pricing.

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