Brazil's shares mark the history of optimistic optimism about the reform led by Bolsonaro

Ibovespa, the benchmark of Brazil, reached a new historical record thanks to the expectations that Congress will approve a reform to the country's social security system.

The indicator rose to 100,000 for the first time Monday, bringing profits this year to 14%.

"It's hard to find another story as positive as Brazil's in the region," said Emy Shayo, director of securities strategy for Latin America at JPMorgan Chase. The bank sees a "virtuous circle" amid a tightening of the tax system and a more flexible monetary policy, a combination that "attracts external capital and helps companies recover much of what they have lost in terms of profits," added Shayo.

Much of the investor optimism towards Brazil is due to the market-friendly program President Jair Bolsonaro, which includes the privatization of inefficient businesses, tax reforms and other measures to support the largest economy in Latin America. Since the Congress resumed in February, investors are closely watching how the new president will gain Parliament's support for the controversial pension bill. Previous governments have not endorsed the proposal, which is considered essential to reduce the country's budget deficit and ensure the sustainability of the economic recovery.

"Pension law to be approved by the Lower House in June", said David Beker, Latin American fixed income strategist at Bank of America Merrill Lynch, Beker estimates that the Ibovespa will end in 2019 at 120,000 thanks to growing profits and expectations of a better tax situation.

Despite the historical record, foreign investors are skeptical about the rebound of the shares, motivated mainly by local elements. The Brazilian stock market lost $ 597 million reais ($ 157 million) in foreign investment this year until March 14, according to market data collected by Bloomberg, after the largest outflow of capital flows recorded since the financial crisis last year world