Ibovespa drops 9.9% in October, and export and dividend baskets resist better

The Ibovespa fell 9.9% in October, in a strong correction that, according to InfoMoney, came after the second round of elections. In a month of widespread decline, what stands out is that not all groups of shares lost in the same proportion.

A survey by Itaú BBA, reported by InfoMoney, follows 17 thematic baskets on the Brazilian Stock Exchange. When looking at this group, the report highlights three groups with relative performance better than the index in October: the high dividend yield baskets, those of exporters and those linked to agribusiness.

The numbers help to size the difference. Also according to InfoMoney, the high dividend yield basket fell 2.6% in the month, that of exporters fell 3.2% and that linked to agribusiness lost 3%. These are drops, but much smaller than the Ibovespa.

On the other side are shares linked to the domestic cycle and higher risk securities, which were among the biggest decliners of the period. The report associates this movement with risk aversion.

Context matters. The correction occurred after the second round of elections, in October, and the analysis shows that the aggregate index hides very different behaviors between thematic baskets.

What changes for the investor

For those who invest and operate, the month's cut indicates that the perception of risk weighed on price formation: higher-risk securities linked to the domestic cycle were among the biggest decliners, while dividend baskets, exporters and agribusiness declined less than the Ibovespa. This does not mean that the pattern will be repeated in the coming months, and the report does not provide price projections. The Itaú BBA survey can serve as a reference to compare the composition of a portfolio with market groups, without this constituting an indication of buying or selling.

Automatically translated from Portuguese.