São Paulo stock exchange extends losses to eighth consecutive day

Brazil's stock market in São Paulo experienced another downturn on Thursday, with the Ibovespa index shedding 0.23%. This marks the eighth consecutive day of losses for the benchmark index, mirroring the previous day's performance and reflecting ongoing investor caution.

The decline was primarily influenced by falling shares of the mining giant Vale, which lost 1.75%, and several major banks. Banco do Brasil saw its shares drop 4.16%, despite reporting a 14% increase in net profit for the second quarter compared to the previous one, surpassing market projections. Analysts expressed caution regarding the bank's operational quality and risk indicators, particularly noting a significant rise in defaults, especially within its individual lending portfolio.

Other major banks also followed the negative trend, with Bradesco down 0.48% and Itaú Unibanco down 0.31%. Santander Brasil was an exception, closing with a modest gain of 0.71%. Adding to the market's tension is the approaching presidential and legislative elections in October, with the official campaign kickoff scheduled for Sunday, introducing political uncertainty.

In contrast, Petrobras shares rose by 0.99%. The day's top performers included Estrella toys, whose preferred shares surged 31.54%, and Multilaser, a technology and electronics company, whose ordinary shares jumped 23.08%. On the downside, Hapvida health company's ordinary shares plummeted by 33.09%. The total trading volume for the day exceeded 29.3 billion reais (approximately $5.6 billion).