Few weeks ago the Brazilian market was uncertain due to presidential candidate Jair Bolsonaro, the Brazilian Real also depreciated in value as well. Brazilian shares are now rallying and do not seem to be slowing down anytime soon, with increased expectation on earnings.
Today the ibovespa the benchmark index for 60 stocks that are traded on the B3 (stock exchange located in São Paulo, Brazil). Half of list companies on the ibovespa have shown growth in earnings before interest of over 10%, rising from the 52 week low of June 2018.
Expectation is now that this trend will continue as companies who did their research will have good returns. Itau BBA a bank prominent in Latin American countries is forecasting good returns, focusing on the commodities and industries driven by internal demand like retailers.
Steel manufactures and paper and pulp companies also expected to post strong numbers, because of higher domestic price and higher shipments respectively, The weaken currency also had strong role in push favourable projects.