The main index of the Brazilian stock exchange jumped 1.6% after the release of the Copom minutes; BTG Pactual explains what is at stake and recommends assets to invest in
This Tuesday, the Copom (Monetary Policy Committee) of the Banco Central released the minutes of its last meeting, after raising the Selic to 10.75% per year last week.
The Committee signaled that the current economic scenario demands a monetary policy more “contractionist” and left the door open for increase the pace of interest rate hikes of the country, with the aim of pursuing the inflation targetwhich remains at high levels:
“The scenario, marked by resilience in activity, pressures in the labor market, a positive output gap, rising inflation projections and unanchored expectations, demands a more contractionary monetary policy,” the statement said.
The directors also stated that they agreed to begin the upward cycle gradually, especially given the context of domestic and external uncertainties, without defining what the pace of increase will be at the next meeting.
It is natural that, with a cycle of high interest rates, the appetite for variable income assets decrease and investors migrate their resources to fixed income assets. However, in this case, this premise does not seem to apply.
Proof of this is that the Ibovespa (main index of the Brazilian stock exchange) reacted positively to the announcement and rose by 1.6% during the trading session, quoted at 132,671 points, being the target of the main news portals:
But what happened for the stock market to react so well to the announcement? Is it time to take a stand? Below, I explain what is at stake for the Brazilian stock exchange e how to invest.
Although Copom maintained a tough tone regarding interest rates, this was the scenario expected by investors. This is because the statement reaffirmed the Committee's commitment to inflation targetyes anchoring expectations it's yes credibility.
And this movement could intensify in the coming months, according to the BTG Pactual. For the investment bank, the Ibovespa may have a second leg of growth if additional structural changes are made to the 2025 Budget.
“Once the municipal elections in October are over, these changes would be well received by the market,” said BTG analysts. In their projections, the index could reach 155 thousand points if these changes are made.
Furthermore, they highlight that, with the cycle of interest rate cuts in the United States and the increase in the Selic rate here, the Brazilian real “must be naturally valued”, which can also encourage the stock market. However, this also depends on the government's commitment to the spending cap and concrete measures to control expenses.
Therefore, BTG Pactual continues to recommend the purchase of variable income assets to investors. In particular, 10 shares are in a buying opportunity quite attractive now, according to investment bank analysts.
Earlier this month, with interest rate decisions in the US and Brazil on the radar, analysts had already indicated that these stocks could benefit:
“A improvement of monetary conditions in the US should continue to be the main catalyst for Brazilian stocks in the short term (…). The likely scenario of a monetary tightening cycle initiated by the new president of the Central Bank could positively impact asset prices in Brazil”, they said.
Therefore, BTG continues to recommend buying of these actions in a free reportavailable to all interested investors. To access the selection of analysts, simply click on the link below:
Every month, BTG Pactual selects stocks that combine attractive multiples with good potential for appreciation and recommends them to investors. In September, with interest rate decisions on the radar in Brazil and the US, the investment bank “did its homework”.
BTG anticipated the decisions and recommended to investors the stocks in which it sees the greatest potential after the decisions. And the good part is that This selection is available free of charge.
In other words, you don't need to pay anything or commit in any way to access BTG Pactual's recommendations. Therefore, to check it out, simply fill out this form and an email will arrive for you with all the information.
Remember: you don't pay anything to consult the recommended stocks, but you can profit a lot from all the information you will find:
DISCLAIMER
This material is not related to specific investment objectives, financial situation or particular needs of any specific recipient, and should not serve as the sole source of information in the investor's decision-making process. Before making a decision, the investor should carry out, preferably with the help of a duly qualified professional, a thorough assessment of the product and its risks in light of their personal objectives and risk tolerance (suitability).