Sat. Mar 28th, 2020

Sao Paulo stock exchange rises 7.5% despite political friction over COVID-19



The Sao Paulo stock exchange advanced 7.50% on Wednesday and chained its second consecutive session in green, despite the political friction in Brazil regarding the coronavirus after the controversial speech by President Jair Bolsonaro, who again underestimated the severity of the pandemic.

In the exchange market, the US dollar depreciated 0.96% against the Brazilian real and closed trading at 5,032 reais for purchase and sale.

The benchmark index of the national market, the Ibovespa, continues to be infected by external good humor and closed with 74,955 points, although pending the turbulent Brazilian political scene.

However, the São Paulo group has plummeted 34% since last February 26, when the first case of coronavirus was confirmed in Brazil, which also meant the arrival of the disease in Latin America.

Almost a month later, Brazilian health authorities report 2,433 infections and 57 deaths in the country, according to the latest balance from the Ministry of Health, which expects a rebound in cases in the coming weeks.

The spread of the pandemic by almost every country in the world has terrified economic operators, who have only begun to regain some confidence this week after the agreement reached between the United States that includes two trillion dollars to stimulate the economy of that country against coronavirus.

In Brazil, Bolsonaro again underestimated the health emergency for COVID-19.

The president demanded the “return to normality”, criticized the confinement of the population and the closure of shops decreed by some regional governors and opted for the reopening of schools.

The far-right leader also branded the new coronavirus “influenza” and advised to quarantine only the elderly and people with previous illnesses, contrary to the recommendations of the World Health Organization (WHO).

The ruler’s statements have been strongly criticized by doctors, specialists, civil society organizations and political leaders with different ideological biases.

All in all, the Sao Paulo stock exchange today gained 5,226 units to its accumulated score.

The turnover reached 28,675 million reais (about 5,735 million dollars) in a total of 4,377,805 financial operations.

Leading the gains in the Ibovespa were the preferred shares of the Brazilian airline Gol, which jumped 35.06%, after the sharp falls in previous days due to the coronavirus.

The securities of the petrochemical company Braskem (29.37%) and those of the car rental company Localiza (26.82%), among other values, were also revalued.

Carrefour Brasil and Pao de Açucar supermarket networks were the biggest losers of the session with falls in their ordinary papers of 4.36% and 2.78%, respectively.

The most traded securities were the preferred shares of the state oil company Petrobras (8.08%), the ordinary shares of the mining giant Vale (8.53%) and the similar ones of the department stores Magazine Luiza (9.05%).

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