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BRAZIL: Ibovespa Rises More Than 3%

(Agencia CMA Latam) - Amid reports on a possible privatization of Petrobras, reduction of compulsory deposit and the disclosure of manufacturing indicators in the domestic and foreign markets, Ibovespa closed the Tuesday trading session with a strong valuation of 3.23%, settling at 76,762.91 points and renewing its historical highs.

"The speech by the Minister of Mines and Energy [Fernando Coelho Filho] on a possible privatization of Petrobras and other state-owned companies, the disclosure of industrial production data here in Brazil, even though they were negative compared to July, encouraged investors," said Vitor Suzaki, an analyst at Lerosa Investimentos.

"Petrobras anchored the rise, but the news on the reduction in the compulsory deposit requirement encouraged the financial sector and the banks' stocks trading was very busy," said Ari Santos, manager of H. Commcor's operations desk

Sources told the "O Globo" newspaper that there is a study on the reduction of the compulsory deposit in the banking system, but a decision on the issue would be taken in the future.

Steelmakers gained the most in the trading session, with Companhia Siderúrgica Nacional [CSNA3] up 9.91% and Usiminas [USIM5] rising 9.75%, even with Petrobras [PETR4 +3.70 %] and Bradesco [BBDC4 +4.15%], Itaú [ITUB4 +3.61%] and Banco do Brasil [BBAS3 +4.09%] in the top five traded shares.

Meanwhile, the locally traded U.S. dollar closed down 0.22%, at R$ 3,148, influenced by the large inflow of currency in Brazil and the announcement of a new issue of debt securities in the foreign market by the National Treasury. Also, the mild foreign scenario made room for the movement of the currency.

For Wednesday, "the trend is to take profits, and analyzing the current economic situation in the domestic market, there is room for going higher still this week," Santos said. "In the external scenario, the release of job creation data in the private sector in September, in the United States, may create some bad mood in the international stock markets and affect the Ibovespa," Suzaki noted.

by Agencia CMA Latam

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