08.10.202514:12:59UTC+00Ibovespa Gains as Investors Eye IOF Replacement Bill

On Wednesday, the Ibovespa index saw an increment of 0.3%, closing in on the 142,000 mark. This was in light of investors directing their attention towards the congressional vote concerning a bill proposed as an alternative to increasing the Financial Operations Tax. The legislation offers continued tax exemptions for incentivized securities and debentures, while standardizing income tax on fixed-income investments to a flat 18%, replacing the previous regressive model. In the banking sector, Itaú's shares increased by 0.6%, while Bradesco's saw nearly a 1% rise. The utilities sector witnessed gains as well, spearheaded by Auren's 4% climb after JPMorgan adjusted its target price to R$13.60, maintaining a neutral stance because of substantial leverage. Eletrobras appreciated by over 1%, subsequent to unveiling its inaugural data center in Campinas and confirming the R$476.5 million divestment of its stake in EMAE to Sabesp, which rose by 0.6%. Incremental gains were also recorded by Vale (0.5%), and steel manufacturers Gerdau (0.9%) and CSN (0.2%). Conversely, Petrobras experienced a 0.3% decline, and Braskem's stock decreased by over 1% following its dismissal of speculations regarding a potential hostile takeover by creditor banks and Petrobras.