Ibovespa, the benchmark stock market index in Brazil, rose 0.32% Friday and ended the session at a record closing level of 81,219.50 points, tracking Wall Street amid a strong inflow of foreign capital. In the week the index accumulated a 2.36% high.
Investors wait for a vote on the short-term spending law in the United States and next week’s trial of the former Brazilian President Luiz Inacio Lula da Silva.
“The markets did a little profit-taking at the start. We spent all day waiting for the United States, the markets rose there, and they set the tone here,” said the chief economist at Homebroker Modalmais, ?lvaro Bandeira.
According to Pedro Galdi, an analyst at Magliano Corretora, the inflow of foreign capital into the Brazilian stock market remains very strong, keeping the momentum.
For next week, investors should monitor Lula’s trial, which will take place on Wednesday (24). For Galdi, this could bring volatility to the Ibovespa on Monday, but should not make the index stay too long in the negative field. Bandeira expects a slight rise on Monday.
“The market trend is still high,” he said.
Meanwhile, the locally traded U.S. dollar closed the session slightly above the lowest intraday level amid lower trading volume. The foreign exchange trading was also influenced investors’ caution due to the crisis involving the spending ceiling in the United States. As a result, the greenback fell by 0.24%, quoted at R $ 3,201.
The material has been provided by InstaForex Company – www.instaforex.com
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