Ibovespa surpasses 139 points, boosted by Embraer shares.
Agents also analyzed the government's decision to file a lawsuit with the Supreme Court to defend the decree on IOF (Tax on Financial Operations).
By Paula Arend Laier
SAO PAULO (Reuters) The Ibovespa closed higher on Tuesday, above 139 points for the first time since mid-June, with Embraer reaching new highs after a request made by the airline SAS, while agents also analyzed the government's decision to file a lawsuit with the Supreme Court to defend the decree on IOF (tax on financial transactions).
The Ibovespa, the benchmark index of the Brazilian stock market, rose 0,5% to 139.549,43 points after adjustments, having reached a high of 139.695,23 points and a low of 138.854,89 points during the trading session. Trading volume totaled R$17,06 billion.
Even after the more than 15% increase accumulated in the first half of the year, in the view of BTG Pactual strategists, the Ibovespa seems "undeniably cheap" when considering only the price-to-earnings multiple 12 months ahead.
"However, when adjusted for long-term real interest rates -- which ended June at 7,1% --, the premium to hold stocks is at 3,3%, slightly above last month's (3,2%), but only marginally above the average (3,1%)," they stated in a report with stock recommendations for July.
"For a sustained recovery to occur, long-term real interest rates need to fall much further or profits must be revised upwards," they added, citing that for rates to fall, the "worrying fiscal situation" must be resolved by this or the next government.
On Tuesday, the Attorney General's Office (AGU) filed a lawsuit with the Supreme Federal Court (STF) to defend the government decree that raised IOF rates -- one of the measures to try to balance public accounts -- and which was overturned by the National Congress.
Finance Minister Fernando Haddad pointed out that achieving the 2026 fiscal target depends on the implementation of the initiative that increased the IOF (Tax on Financial Operations), the provisional measure that increased taxes on financial investments, and a project to be presented to cut R$15 billion in tax benefits.
"The market as a whole is watching today's events to see if the government can actually continue to move forward with this agenda," noted Willian Queiroz, partner and advisor at Blue3 Investimentos.
Abroad, Wall Street closed without a clear direction, with the Nasdaq down 0,82% and the S&P 500 losing 0,11%, while the Dow Jones rose 0,91%, in a volatile session marked by seasonally low liquidity.
HIGHLIGHTS
- EMBRAER ON advanced 4,42%, renewing historical highs and reaching R$81,35 at its best moment, the highest intraday level ever recorded, after Scandinavian Airlines (SAS) signed an agreement with the Brazilian company to buy 45 E195-E2 jets, with purchase rights for 10 additional aircraft. Excluding the purchase rights, the value of the order is approximately US$4 billion.
- VALE ON closed trading up 1,35%, also offering significant support, in a session where it traded independently of iron ore futures in China, where the most traded contract on the Dalian Commodity Exchange ended the day's trading down 1,32%.
- PETROBRAS PN rose 0,35%, supported by the movement of oil prices abroad, where the price of Brent crude closed with an increase of 0,6%. The state-owned company announced on Tuesday a 2,9% increase in the average selling price of aviation kerosene (QAV) to distributors. Data from ANP showed that Petrobras produced 2,21 million bpd in May, a 7,31% increase compared to the same month last year.
- ITAÚ UNIBANCO PN closed with a positive variation of 0,45%, while BRADESCO PN advanced 0,62% and SANTANDER BRASIL UNIT ended with an increase of 2,02%. Conversely, BANCO DO BRASIL ON fell 0,81%, in a trading session marked by the announcement of the 2025/26 Harvest Plan for agribusiness, with an offer of R$516,2 billion. BB manages most of the resources of the Harvest Plan.
- BB SEGURIDADE ON shares rose 1,76% after its board of directors approved the distribution of R$3,77 billion in dividends, related to the net profit for the first half of 2025. The values per share and the payment and ex-dividend trading dates will be announced after the release of the second quarter results.
- AZZAS 2154 ON fell 4,42%, in a session of adjustments after three consecutive gains, a period in which it accumulated an appreciation of 11,6%. The owner of brands such as Arezzo and Farm detailed the restructuring of its board of directors the day before, with analysts also seeing signs of a new alignment between the reference shareholders Alexandre Birman and Roberto Jatahy.
- NATURA&CO ON fell 2,26%, a day after the company held an event with analysts and investors the previous day. This Tuesday marks the "consummation" of the merger of Natura&Co into Natura Cosméticos, when shareholders holding Natura&Co shares will receive one Natura Cosméticos share for each share. Starting Wednesday, trading of Natura Cosméticos shares will begin under the ticker symbol "NATU3" on the B3 stock exchange.
