Ibovespa falls 1,8% following Petrobras and Vale declines.
The oil company, which experienced a day of euphoria in the morning following the release of its earnings report, turned to a decline amid the expiration of stock options on the Bovespa and a rather cautious perception of the company's future.
By Paula Barra
SÃO PAULO - The Ibovespa fell this Monday (18) pulled down by the shares of Petrobras, Vale and banks. The oil company, which experienced a day of euphoria in the morning after the release of its balance sheet, turned to a fall due to the expiration of options on shares in the Bovespa and a very cautious perception about the company's future. The exercise of options also weighed on Vale's shares today, while banks fell sharply amid a possible tax increase. Check out the main highlights of the Bovespa in this session:
Petrobras (PETR3, R$ 14,64, -2,72%; PETR4, R$ 13,78, -1,99%) After rising about 4%, Petrobras shares reversed course and fell sharply this afternoon amid repercussions from the earnings report and the exercise of stock options on the Bovespa stock exchange. The earnings report was encouraging, with a net profit of R$ 5,3 billion, above analysts' expectations, but other indicators, such as debt, remain worrying, leading to a more cautious outlook for the future. "Although the shares may react well to the results, this good quarter may be 'specific'. Petrobras' integrated business in Brazil was helped by high domestic prices, while low capex may be just a seasonal issue," BTG analysts point out. Following the earnings report, the company also announced on Friday that the issuance of up to R$ 3 billion in debentures had been approved.
Today, Goldman Sachs cut its recommendation for the state-owned company from neutral to sell, and lowered its target price for ordinary shares from R$10,00 to R$8,10, while the target price for preferred shares was reduced from R$12,00 to R$10,00. The revision comes amid expectations of lower oil prices in the coming years.