TIM shares plummet after Anatel decision.
The market reacted to the Agency's punishment, which suspends new sales by the company in 19 states starting Monday; at 15:20 PM, shares were down 8,88%, the worst result since December 8th.
247 – TIM's shares led the declines in São Paulo's trading session this Thursday, dragging down the shares of its parent company, Telecom Italia. At 15:20 PM, the telephone operator's shares were down 8,88%, trading at R$ 8,68 on the Ibovespa. The low numbers are a market reaction to the punishment applied by Anatel in several states this Wednesday. As determined by the Agency, TIM, Claro, and Oi will not be able to sell new SIM cards starting next Monday, with TIM being the most affected (prohibited from selling in 19 states). This Wednesday, TIM had the second-largest drop of the day, second only to Oi (suspended in 5 states). Claro does not operate on the Stock Exchange.
Also due to the announcement, Bank of America Merrill Lynch stopped recommending buying TIM shares, now rating the stock as neutral, which further worsens the company's situation on the stock exchange. The situation for Oi today is the opposite. The company's shares were among those trading with the highest gains at 13 PM, up 4,25% and quoted at R$ 9,56. This positive scenario may reflect an announcement by the operator stating that it is committed to the development of the telecommunications sector and that the Anatel suspension does not affect its investments in network improvements.
Analysts at Banco Itaú criticized Anatel's action in a statement. According to the statement, the suspension was "harsh and abrupt" and brings regulatory instability to the market. According to Bloomberg, TIM's declines on Thursday were the lowest since the trading session of December 8th. According to the government, the companies were warned in advance about the penalties that would be imposed. "It was a well-thought-out episode," stated the Minister of Communications, Paulo Bernardo.