Ibovespa has the biggest drop since June 2022 and 26 shares fall more than 20% in October
According to InfoMoney, a rising dollar, an opening interest rate curve and worsening fiscal conditions weighed on the stock market, and only 11 of the 76 shares in the index rose.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 3 MIN
Ibovespa closed October with the biggest monthly drop since June 2022. According to InfoMoney, the index fell 9.88% in the period, in a month marked by the presidential election, the result of which was the re-election of Lula (PT) confirmed on the Sunday before the end of this report.
The same source points to three forces behind the movement: the soaring dollar, the opening of the interest curve and the worsening of the fiscal outlook. When exchange rates and interest rates rise at the same time, company financing becomes more expensive and the pressure spreads to sectors linked to domestic consumption, which helps to understand the general weakness of the stock market.
The numbers show the extent of the movement. According to Exame, 64 of the 76 Ibovespa shares fell during the month, 51 fell more than 10% and 26 lost more than 20%, with half of the list accumulating a drop of more than 15%. InfoMoney also counted 26 shares with a drop of more than 20%.
The highs were few and concentrated. InfoMoney recorded 11 rising stocks and cited PRIO3, SUZB3, PETR3, PETR4, CXSE3, BBSE3, TIMS3, VIVT3, EMBJ3, BRAV3 and GGBR4 among the positive highlights. Exame counted 12 positive shares, based on the closing of 09/30 compared to Friday, 10/30, and the two reports do not coincide in the count.
According to InfoMoney, part of the explanation lies in the migration of investors to companies that are less dependent on the domestic economy. This shift indicates that capital sought businesses with revenue less linked to the Brazilian cycle, while companies exposed to the domestic market were left behind.
In the editorial reading of this newspaper, the fiscal data is the most sensitive. The election defined who governs, but it does not answer the central question about how public accounts will be balanced, and it is this doubt that tends to weigh most heavily on long-term investors.
What changes for the investor
The concentration of losses shows that the risk was not distributed equally across the index. For those who follow and operate the stock market, the message is to observe the exchange rate, interest curve and fiscal discourse as variables that affect the market as a whole, and not just the results of each company. This article does not provide a purchase or sale recommendation or price projections.
Automatically translated from Portuguese.
