The Ibovespa slipped 0.3% to close at 184,477 on Friday, pressured mainly by declines in the energy sector. Oil prices retreated amid reports that the United States and Iran are weighing a potential agreement that could reopen the Strait of Hormuz and lift the U.S. blockade on Iranian ports. Petrobras dropped 2.4%.
The pullback in oil prices provided some relief to credit-sensitive sectors that had been under strain from concerns over energy-driven inflation. Still, gains were capped by Brazil’s mid-month inflation reading, which came in above expectations.
Financials finished higher. Utilities also advanced, with Axia edging up after approving an additional capital allocation of up to R$4 billion, linked to second-quarter results, for the redemption of Class C preferred shares.
Magazine Luiza climbed 7.3% after S&P reaffirmed its brAA- rating. WEG gained 0.6% after announcing an expansion of its project to build a new battery energy storage systems plant in southern Brazil.
On the week, the Ibovespa lost 0.9%.
