The Ibovespa traded cautiously above 131,900 points on Monday, as investors absorbed the latest insights from Brazil's central bank. Mega-cap commodity producers provided crucial support to the index. The recent Focus Bulletin indicated an uptick in inflation expectations, while projections for GDP and interest rates remained stable, ahead of significant inflation data scheduled for release later this week.
Among the gainers, state-owned oil giant Petrobras experienced a rise of over 0.6%, buoyed by increasing oil prices. Meanwhile, mining powerhouse Vale saw an increase of 1.4%. Prominent meat processing company JBS added more than 1%, followed by Banco Bradesco and Companhia Sanea, which rose by 0.9% and 1.8%, respectively. However, WEG, B3, and Raia Drogasil weighed on the index, with losses ranging between 0.6% and 1%.
Year-to-date, Brazil's primary stock market index (IBOVESPA) has declined by 1,897 points, or 1.41%. Estimates suggest that the index will trade around 129,008.32 by the end of this quarter, based on global macro models and analyst forecasts. Looking further ahead, a forecast indicates it may settle at 120,941.18 in 12 months' time.