Coronavirus

Stocks jump following announcement of loosening quarantine in São Paulo

Brazil’s benchmark stock index Ibovespa saw an increase of 2.3 percent today, following a more buoyant mood in North American markets and a boost from retail stocks, after São Paulo Governor João Doria announced his plan to gradually reopen the state and loosen quarantine rules. 

Among the best performers, retailer B2W — who owns online marketplaces Submarino and Lojas Americanas — ended the day on a 17.5-percent high. Via Varejo, owner of retail chains Casas Bahia and Ponto Frio, rose 12.6 percent, while clothing store chain Lojas Marisa gained 11.2 percent. 

“The shares jumped after São Paulo’s governor announced the gradual exit of quarantine, this is boosting Ibovespa,” said Mirae Assets’ director Pablo Spyer, in his daily briefing.  

Individual factors regarding companies also helped to boost stocks, such as changes in Via Varejo’s board to foster digital transformation, and an HSBC report recommending clients to buy B2W shares, according to InfoMoney.On the other hand, the Brazilian Real reached a new record low, at BRL 5.41 to the U.S. Dollar, with investors predicting that the Brazilian Central Bank may slash interest rates once more in its May 6 monetary policy meeting. As InfoMoney reports, Barclays bank believes the monetary authority may reduce rates to 3.0 percent, or perhaps even lower.    

Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

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