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SÃO PAULO – With a market value of R $ 291 billion, Vale is the third largest Brazilian publicly traded company. It is also one of the companies that dictate the behavior of the Ibovespa, since it accounts for almost 11% of the index.
On Friday, as the Brazilian Stock Exchange was closed due to a vacation in São Paulo, the deposit of American Depositary Receipts of Vale dropped 13% after the breakup of the company's dam . Brumadinho (MG). The shares softened the NYSE during the trading session, but the losses remained fairly expressive at around 8%.
Monday (28), with the local market adjustment, the stock price adjustment negotiated at B3. For the Itaú BBA badyst team, the accident is expected to influence short-term roles. This may for instance make it difficult to obtain environmental and operational licenses and even delay the resumption of Samarco's activities, they write in a report distributed on Friday.
In addition, the reconstruction of the dam will require investment and
If Vale's shares fall by about 10%, the Ibovespa loses about 1 percentage point just because of the company.
That does not mean, of course, that Ibovespa will fall. Today, the EWZ ETF, which includes Ibovespa's heaviest paper and is traded internationally, even posted gains even as Vale's fall on the NYSE was larger. . However, it should be noted that Vale's shares have significantly reduced the market rate throughout the day.
For the moment, information on the causes of the accident and the exact number of victims are insufficient. lower than that of Mariana, whose dam was released, which released 62 million cubic meters of tailings, while the Brumadinho dam would have a capacity of 13 million cubic meters of tailings.
At a press conference, the chairman of Vale Fabio Schvartsman said that for the moment does not concern "with the production (Vale ) only with the victims". According to the report released by the company in the third quarter of 2018, Paraopeba's production volume was 7.3 million tonnes of iron ore, or 7% of Vale's total iron ore production during the reporting period. .
It is also worth noting the movement that Vale's newspapers had after the Mariana disaster. On the day of the accident, on November 5, 2015, the badet dropped by 2.59% (it should be noted that news on the subject only grew stronger at the end of the trading session) and, the next day, the fall in badets was even more important. , 55%. However, equities rebounded and have since accumulated gains of 258%. Until the Brumadinho accident, the expectations for the Vale were positive, the market being primarily made up of eyes.
in the recovery of the price of iron ore and in the course of the trade war between the United States and China. Attention is also focused on the fourth quarter results, which will be announced on November 14th.
According to Bradesco BBI, it was expected that the company would once again obtain solid results despite an increase in ore and the highest premium for the quality of the goods. However, all these possible catalysts have now been overshadowed by this tragedy of the environment.
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