Bovespa rises 1,5% after Dilma's interview on JN.

By Lara Rizério • Rodrigo Tolotti Umpieres

SÃO PAULO - The Ibovespa initially opened lower, but gained strength during the morning, closing higher for the fourth consecutive trading session – with a 5,2% advance in the period, equivalent to 2.870 points – after surpassing its highest level since March 2013, reaching 58.474 points intraday. The benchmark stock index closed with gains of 1,54%, at 58.449 points, and the volume traded on the Bovespa reached R$ 7,171 billion. This performance is attributed to the market's understanding that President Dilma Rousseff's interview on Jornal Nacional was not good for her, which favored a rise of more than 2% in state-owned companies and banks.

The Ibovespa surpassed an important level today (58.150 points). This point triggers buying and shows the dominant buying force at the moment, as it is the highest level reached by the index since March 2013. With the benchmark closing the session above this region, further gains are expected for the Ibovespa, with the first target being 59.500 points, said technical analyst Wagner Caetano, director of Top Traders and Terminal Cartezyan.

"The beginning of the session was strange, perhaps with investors taking some profits after two strong gains in the Ibovespa. However, the assessment that Dilma Rousseff's interview on Jornal Nacional was bad ended up prevailing in the market and boosted the shares of state-owned companies," emphasizes Celson Plácido, chief strategist at XP Investimentos. The interview that Dilma gave to William Bonner and Patricia Poeta was not well received by investors and political scientists.

President Dilma Rousseff struggled to answer questions during her interview on Jornal Nacional. When asked about the state of public health, the Workers' Party member admitted there is much room for improvement and that this is one of Brazil's biggest challenges. Regarding corruption, the president said she would not comment on the Supreme Federal Court's (STF) Mensalão trial, attempted to distance herself from the accusations, and preferred to highlight the programs she had established to bring more transparency to the government.

"Dilma Rousseff in the interview was similar to her usual self, and not a candidate capable of making an electoral impact with her words," highlighted the analysis team at Guide Investimentos. And, "as expected, she didn't answer the questions she received exactly, nor did she use them to establish an advantage over Aécio [Neves, of the PSDB] and Marina [Silva, of the PSB]. The common opinion is that Aécio and especially Campos [who passed away on August 13th] made better use of their opportunities there," the analysts said.

Yesterday, in an interview with InfoMoney, political scientist David Fleischer from the University of Brasília (UnB) described President Dilma's performance with these two words: unprepared and nervous. According to the expert, faced with the pointed questions and firm stance of the journalists, the Workers' Party member was unable to respond adequately and ended up trying to avoid the most controversial topics. "Since it's a newspaper with a large national reach, the repercussions could alienate Dilma's voters," points out Celson.

It's worth noting that the last two days saw strong gains for the index, with the possibility of Marina Silva running as a candidate for the PSB and Datafolha indicating a guaranteed second round with Marina emerging victorious in a possible runoff. The poll, released on Monday, showed Dilma Rousseff (PT) with 36% of voting intentions for president, followed by Marina (PSB) with 21%, and Aécio Neves (PSDB) with 20%. It's worth highlighting that a new poll has already been registered with Marina Silva's name, this time conducted by MDA in partnership with CNT.

Meanwhile, overseas, the world's main stock indices are rising in this session, extending gains for the second consecutive day, reflecting signs of easing geopolitical tensions. Investors remain attentive to the release on Wednesday of the minutes from the Federal Reserve's July monetary policy meeting, as well as any comments from the Fed summit in Jackson Hole, Wyoming, which begins on Thursday.

"Some Fed officials have spoken about the need for an early interest rate hike, so investors will also be looking to see if there is a more 'hawkish' trend in the minutes of the Federal Open Market Committee (FOMC)," said Kathy Lien, managing director at BK Asset Management.

Petrobras and banks rise sharply, while MMX falls 9%. The session's biggest highlight was the performance of state-owned companies' shares, primarily Petrobras (PETR3; PETR4), and banks, which have seen gains since March due to the political climate and in response to election polls. In the case of the oil company, ordinary shares rose 3,20%, to R$ 19,69, while preferred shares advanced 2,50%, to R$ 20,91. Among the banks, Itaú Unibanco (ITUB4, R$ 37,51, +3,42%) and Bradesco (BBDC3, R$ 38,46, +3,95%) stood out.

On the downside, Veja magazine's Radar column reported yesterday late afternoon that MMX Mineração (MMXM3, R$ 1,06, -10,17%), owned by businessman Eike Batista, is about to file for bankruptcy protection, just like the former OGX Petróleo, now Óleo e Gás Participações (OGXP3), and OSX Brasil (OSXB3).

According to the publication, the request should be made by the end of this month. Yesterday, the company informed that Samir Zraick, an independent member of the company's board of directors and chairman of the company's Audit Committee, re-elected at the ordinary general meeting held on April 30 and at the management meeting held on September 20, 2013, respectively, resigned on August 15 from his positions at MMX. The election of a replacement for Zraick will be announced to the market in due course, the company said. MMXM3 shares are down 6%.