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BRAZIL: Ibovespa Falls For Second Day, Down For The Week

(Agencia CMA Latam) - Ibovespa, the benchmark stock index in Brazil, closed down for the second consecutive trading session (-0.8%), settling at 75,389.75 points Friday on profit-taking by investors after the index broke closing records in sequence earlier this month. The profit-taking was also triggered by the worsening external scenario, amid new tough talk between the United States and North Korea. As a result, Ibovespa lost 0.48% in the week.

"It was a day of profit-taking. The Ibovespa still has a positive trend, but it took to correct," said Bruna Moura, an analyst at Toro Radar.

Among the biggest declines in the Ibovespa today were mining and steel stocks, which had risen in recent weeks and still reflected heavy losses in iron ore prices in the past two days. Vale's shares (VALE3 -1.91%) fell almost 2%, while CSN shares (CSN3 -4.88%) and Gerdau shares (GGBR4 -2.60%) also suffered heavy losses.

The locally traded U.S. dollar closed down 0.5%, at R$ 3,129, following the movement of emerging market currencies in the external scenario.

Meanwhile, although Ibovespa had fallen in the last two sessions, analysts still bet on maintaining the momentum, which has been sustained by signs of recovery in the domestic economy.

by Agencia CMA Latam

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