Ibovespa renews record and closes above 150,000 points for the first time.

The Ibovespa closed higher on Monday, in another record-breaking session, with the index ending the day above 150,000 points for the first time.

Positive readings from the earnings season, both internationally and domestically, boosted stock market gains, which were also supported by the rise in Petrobras shares – which will publish its results this week.

The Ibovespa, the benchmark index of the Brazilian stock market, closed up 0.61% at 150,454.24 points, marking its ninth consecutive day of gains.

The Ibovespa reached a high of 150,761.29 points and a low of 149,550.84. Trading volume on Monday totaled R$21.3 billion. The earnings season is favoring the Brazilian stock market, given the "strong performance of several companies," highlighted Nicolas Gass, head of investment allocation and partner at GT Capital. "Companies are hitting revenue targets, especially those that make up the Ibovespa index," he said.

After the close of business on Monday, BBSeguridade and TIM will publish their third-quarter results.

The highlight of the week, however, is Petrobras, which releases its data on Thursday. The agenda for the coming days also includes Embraer, which releases its results this Tuesday, the same day as Itaú Unibanco, as well as retailers such as Lojas Renner and Magazine Luiza, both scheduled to release their results on Thursday.

External dynamics are also giving the index a boost. "The prevailing market sentiment remains positive, supported by the start of the interest rate cut cycle in the United States, discounted valuations on the Brazilian stock exchange, and robust foreign capital inflows," said Eduardo Rahal, chief analyst at Levante Inside Corp.

According to the analyst, there is still room for new records. "The Ibovespa is trading at approximately 8.6 times projected earnings for the next 12 months, below Latin American peers, indicating room for continued movement if the global environment remains favorable," he highlighted.

The Central Bank was also on the radar of market participants. In the morning, the Director of Supervision at the Central Bank, Ailton de Aquino, said that the new rules established by the National Monetary Council for the operation of financial institutions should impact approximately 500 entities, which will have their required capital increased to R$9 billion.

The focus, however, is on the Copom's interest rate decision, which will be released on Wednesday. The market is pricing in an almost 100% probability of maintaining the Selic rate at 15% per year, but will be attentive to the Central Bank's indications for the following meetings, in December and January.

HIGHLIGHTS

- PETROBRAS PN advanced 1.18%, while PETROBRAS ON rose 0.89%. The company announced on Monday that its board of directors approved a new Voluntary Severance Program (PDV), with a potential target audience of approximately 1,100 employees.

- ITAÚ UNIBANCO PN rose 1.66%, with investors awaiting the publication of the bank's results, which come out on Tuesday. SANTANDER BRASIL UNIT appreciated 1.22%, BRADESCO PN gained 1.11%, BANCO DO BRASIL ON showed an increase of 0.82%, and BTG PACTUAL UNIT fell 0.66%.

Minerva shares rose 2.79%, leading the gains, amid expectations for the company's results, which will be released on Wednesday after the market closes.

-EQUATORIAL rose 2.59%, having led the gains at some points during the trading session. On Friday, the company announced that its board approved the distribution of interest on equity in the amount of R$1 billion.

- MARCOPOLO PN extended Friday's losses, plunging 8.11% and leading the Ibovespa's declines. The movement still reflects market frustration with the company's results. Last week, in its earnings report, the company showed a 10% year-on-year drop in EBITDA. On Friday, Blackrock reduced its stake in the company, now holding 4.981% of the company's preferred shares.

- VALE ON closed with a slight increase of 0.14%, amid losses of more than 1% in iron ore futures, pressured by the decline in steel production in China.