BTG forecasts 30% drop in Ibovespa in dollars and real interest rate at 8%
BTG Pactual expects a selloff of Brazilian assets in the coming weeks. The bank projects a 17% drop in the Ibovespa to around 170,000 points - the level it was at at the end of August and below the 192,000 points before the first round. For foreign investors, the damage is expected to be greater: combined with currency depreciation, the stock market drop in dollars could reach 30%, according to…
Brazilian bank BTG Pactual forecasts a sell-off of Brazilian assets in the coming weeks. The bank predicts a 17% drop in the Ibovespa to around 170,000 points and a 30% decline in the stock market in dollars, due to currency devaluation. BTG recommends investing in export-oriented companies with low leverage, such as Gerdau, Suzano, and Vale, and those with solid balance sheets like Caixa Seguridade and Porto Seguro. The bank also highlights Petrobras and Itaú as well-positioned companies.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
