Brazil’s Bovespa index rose more than 8 percent in early Monday trade and passed 205,000 after Flávio Bolsonaro led President Lula in the first round.
Brazil’s benchmark Bovespa index gained more than 8 percent in early Monday trading and exceeded 205,000 points after right-wing Senator Flávio Bolsonaro led President Luiz Inácio Lula da Silva in the first round of the presidential election, Reuters reported.
Shares in retailer Magazine Luiza, exchange operator B3 and lender BTG Pactual jumped more than 20 percent each and were among the top gainers. Pulpmaker Suzano fell as much as 8.5 percent. Reuters attributed the session to the election result.
BBC News reported that, with almost all votes counted, Bolsonaro had about 47 percent to Lula’s about 45 percent, short of the majority needed to win outright. A runoff is set for 25 October. El País, citing the Superior Electoral Court with 98 percent counted, put the split at 47.1 percent to 45 percent.
The market move is a separate trading reaction to that political result. Investors treated a possible change of government as positive for parts of the equity market, while some exporters moved the other way. Neither candidate has yet formed a second-round majority.
Trading on later sessions will show whether the opening surge holds into the three-week runoff campaign. Official TSE tallies remain the reference for the vote shares.