FX.co ★ Ibovespa Dips on Bank Losses and Ukraine Risks

On Friday, the Ibovespa index slipped to approximately 136,000, as market participants concentrated on corporate earnings and the anticipated meeting between US President Donald Trump and Russian President Vladimir Putin regarding the Ukraine conflict. Banco do Brasil experienced a decline of over 3% after posting its weakest profit figures in nearly half a decade. The bank reduced its dividend payout following accounting adjustments that necessitated increased provisions for loan losses, leading to a 60% year-on-year decrease in adjusted profit for the second quarter. Conversely, Cosan reported a 0.7% increase in its stock price, with its Q2 adjusted EBITDA reaching R$2.83 billion, marking a 19% rise from the previous year. Marfrig’s stock rose by 3.8% as it announced a net profit of R$85.2 million, reflecting a 13% growth from the second quarter of 2024. Other prominent financial institutions, including Itau and Bradesco, also saw their share prices dip. Additionally, major raw materials companies, such as Petrobras and Vale, experienced declines as they mirrored downward trends in their respective commodity benchmarks.