Stories
Brazil Stocks Surge Adding $100 Billion After Bolsonaro Upset
- •Brazil's stock market added nearly $100 billion in market value within 90 minutes of trading after Senator Flavio Bolsonaro unexpectedly outperformed President Luiz Inacio Lula da Silva in the first round of the presidential election.
- •The benchmark Ibovespa jumped up to 9.1 percent, crossing the 200,000 points mark for the first time in history.
- •Major heavyweights like Petrobras and Itaú Unibanco drove the gains, while mid- and large-cap stocks anticipated to benefit from pro-reform policies saw dramatic percentage increases.
- •The Brazilian real strengthened more than 4 percent against the US dollar, moving below the 5-per-dollar level.
- •Bolsonaro secured about 47 percent of valid votes compared to Lula's 45 percent, setting up a runoff election on October 25 amidst ongoing political uncertainty.
Key Questions Answered
Brazil's stock market added nearly $100 billion in market value in about 90 minutes of trading on Monday following the unexpected election outcome. The benchmark Ibovespa jumped as much as 9.1% to push the index above the 200,000 mark for the first time.
Heavyweights like Petrobras preferred shares added about $19.2 billion in market value, while Itaú Unibanco contributed $16.2 billion and BTG Pactual units added $11.8 billion. Bradesco preferred and B3 also contributed significantly, with these five names accounting for over $60 billion of the total increase.
Senator Flavio Bolsonaro and incumbent President Luiz Inacio Lula da Silva will face each other in a runoff election on October 25. This follows the first round where Bolsonaro won about 47% of valid votes against Lula's 45%.
