Ibovespa rises for the 10th consecutive day and hits a record high after faltering amid adjustments.

By Paula Arend Laier

SAO PAULO (Reuters) The Ibovespa closed with modest gains on Tuesday, but reached a new high after faltering with adjustments following its longest winning streak since the middle of last year, pressured by the fall in Vale and Embraer shares.

The Ibovespa, the benchmark index of the Brazilian stock market, rose 0,17% to 150.704,20 points, completing ten consecutive trading days with positive results – the longest streak since July 2024, when it rose in 11 sessions.

At its peak for the day, it reached 150.887,55 points, a new intraday high. At its lowest point, it registered 149.978,79. The trading volume totaled R$25,18 billion.

According to Willian Queiroz, partner and advisor at Blue3 Investimentos, the stock market reflected profit-taking movements at times, as well as the "bad mood" in the international scenario.

In New York, the S&P 500, one of the benchmarks of the US stock market, fell 1,17%, with presidents of major banks warning that stock markets may be heading for a negative correction.

Queiroz also highlighted the expectation for Brazil's monetary policy decision on Wednesday, when the Selic rate is expected to remain at 15%.

Given the consensus on the decision, attention should now focus on the statement that will be released at the end of the meeting, which may signal the Central Bank's next steps.

Finance Minister Fernando Haddad said on Tuesday that interest rates are "excessively restrictive" and argued that the monetary authority should at least give a signal about future cuts.

HIGHLIGHTS

- VALE ON fell 1,12%, following the weakness in iron ore futures prices in China. The most traded contract on the Dalian Commodity Exchange fell 1,71%, to 775,5 yuan (US$108,87) per ton.

- EMBRAER ON fell 3,6% after the release of its third-quarter results, which showed an adjusted net profit of R$289,4 million compared to R$1,23 billion a year earlier. Net revenue, in turn, increased to R$10,87 billion.

- KLABIN UNIT closed up 2,95%, even with a 34% drop in net profit in the third quarter compared to the same period a year earlier. Adjusted EBITDA grew 17%, with an increase in margin from 36% to 39%.

- BB SEGURIDADE ON advanced 1,2%, after reporting a 13% increase in recurring profit for the third quarter, stating that the main highlight was the financial result, driven by volume expansion and the rise in the Selic rate.

- TIM ON shares rose 1,2%, following a 50% increase in third-quarter net profit compared to the same period a year earlier, driven by controlled expense growth. Adjusted EBITDA increased 7,2% to R$3,47 billion.

- COSAN ON fell 3,12% after pricing its share offering at R$5 per share and approving a new follow-on offering to improve the credit and liquidity profile of the company, as well as its subsidiaries and investees, including Raízen. RAÍZEN PN dropped 2,13%.

- ITAÚ UNIBANCO PN lost 0,3% ahead of the release of its third-quarter earnings report after the market closed, bucking the trend seen in the sector on the Ibovespa.

- PETROBRAS PN shares rose 0,5%, bucking the trend of falling oil prices in the international market. The price of a barrel of Brent crude closed the day down 0,69%, at US$64,44.