Ibovespa Rises on Energy and Utility Gains

The Ibovespa edged up to trade above 196,000 on Monday, boosted by gains in energy and utilities. The energy sector was lifted by a sharp rebound in oil prices, triggered by renewed tensions after the US seized an Iranian cargo ship and Iran reasserted control over the Strait of Hormuz. In utilities, Axia gained more than 1.5% and Sabesp rose over 2%. In contrast, major banks declined as the oil surge reignited stagflation fears, pressuring the outlook for banks due to elevated rates and low credit demand. Bradesco lost near 1% and Itaú shed 0.4%. Vale also fell over 1% as freight costs rose on higher energy prices.

The Ibovespa erased its early gains to close 0.55% lower at 195,734 on Friday, retreating to levels last seen on April 9th. While the reopening of the Strait of Hormuz initially boosted sentiment, a 9.86% plunge in oil prices ($85.35) weighed heavily on the index. Petrobras was the main laggard, slumping 5.05% as it shed earlier gains from the announcement of its acquisition of a stake in offshore block 3 in São Tomé and Príncipe. In contrast, Vale rose 1.51% following resilient Q1 production data. The banking sector mostly supported the broader market as bond yields fell, with gains for Banco do Brasil (+0.78%), Santander Brazil (+0.70%), and Bradesco (+0.77%), while Itaúsa fell 0.27%. Other notable movers included Rede D'Or (+1.53%) and WEG (+0.54%), while Eletrobras fell -2.81% and Ambev shed -0.78%.

The Ibovespa gained nearly 0.5% to trade above 197,500 on Friday, after Iran declared the Strait of Hormuz open. Iran’s Foreign Minister Abbas Araghchi confirmed the Strait is now fully open to all commercial vessels for the remainder of the ceasefire. Oil prices plummeted and bond yields fell, supporting banking stocks and the broader market. Itaú and Banco do Brasil each rose nearly 2%, while Bradesco gained about 2.5%. In addition, Vale climbed more than 1.5% on resilient Q1 2026 production and sales, prompting Itaú BBA to slightly raise its Ebitda proforma estimate. Utilities also advanced, with Axia and Eneva each up 3%. Other notable gains included Ambev (+1.5%), WEG (+1%), Embraer (+2.5%), and Rede D'Or (+2%). Petrobras, however, slumped over 4% on falling oil prices, shedding earlier gains from the announcement of its acquisition of a stake in offshore block 3 in São Tomé and Príncipe.