Ibovespa Advances at Week Start

The Ibovespa rose 0.5% to close at 182,514 on Monday as a rebound in the global equity market and optimism regarding potential peace talks in the Middle East supported Brazilian assets. While the index retreated from intraday highs the session remained positive following comments from President Trump about serious discussions to end operations in Iran which briefly eased the intense geopolitical risk premium. This recovery was led by industrial and utility heavyweights as WEG jumped 3.6% following its investment in battery storage systems while Sabesp climbed 2.5% amid broader strength in the sanitation sector. Central bank director Gabriel Galipolo however maintained a cautious tone noting that the current oil shock continues to push inflation expectations higher and weigh on domestic activity. Despite these headwinds blue chips like Vale and Petrobras added roughly 0.7%.

The Ibovespa rose over 1% to trade above 183,500 on Monday, tracking a global rally in equities with support from lower bond yields. Benchmark credit costs rose across the curve, taking pressure off banking stocks, which rebounded with minor gains. Bradesco was up 0.3% and Itaú was up 0.5%. Also, WEG rose nearly 5% after announcing construction of a new, battery energy storage systems manufacturing plant. Vale gained more than 2% as iron ore prices edged up, while Petrobras gained with higher oil prices. The utilities sector also traded positive, with Sabesp up 1.6% and Axia gaining over 1%

The Ibovespa edged down to trade below 182,500 on Friday as investors remained pessimistic amid ongoing Middle East tensions. US President Trump's extension of the Iran ultimatum failed to ease oil prices, which rose further, prompting continued inflation concerns and lifting bond yields. This weighed on banking stocks, with Itaú and Bradesco falling over 1% and Banco do Brasil slumping more than 2%. The utilities sector also extended losses, with Axia down 1.5%. Other laggards included WEG and Rede D'Or, both down about 1%. In contrast, Petrobras (+1%) extended gains on higher oil price. In other news, Braskem plunged 10.4% after reporting a R$10.28 billion loss for Q4 2025. Goldman turned cautious on Hapvida (-3.8%), downgrading from Buy to Neutral and lowering its price target. Azul lost over 5% after posting a R$1.6 billion net loss in Q4 2025. Meanwhile, Ambev gained 1% following Thursday's announcement of a $1 billion investment in responsible alcohol consumption initiatives.