Bovespa ends the year on a weak note.
After a 15,5% drop last year, the Brazilian stock market maintained its downward trend on the first trading day of 2014, falling another 2,26%.
Stênio Ribeiro
Reporter from Agência Brasil
Brasilia – After a 15,5% drop last year, the Brazilian stock market maintained its downward trend on the first trading day of 2014, falling another 2,26%, with the Ibovespa, the main index of the São Paulo Stock Exchange (Bovespa), marking 50.341 points.
The decline was impacted by the official announcement of a reduction in industrial activity in China, exceeding expectations. Since China is our largest trading partner, the news primarily affected the shares of companies exporting commodities (basic products with international pricing).
There was a sharp drop in the shares of Petrobras and Vale, which have the largest share of the stock market, as well as in steel companies. However, the highest declines were recorded in the shares of construction and energy supply companies.
Meanwhile, the foreign exchange market, which had already recorded gains of 15,3% last year, began 2014 with a further appreciation of 1,08%, with the dollar quoted at R$ 2,387 for sale – the highest level since August 22, when the US currency closed at R$ 2,432.