Brazilian equities listed on B3 lost R$963 billion in market value in the week after the second-round election, according to Elos Ayta. The Ibovespa fell 18.12 percent over the week, its largest weekly drop since March 2020.
Market value erased
The consolidated market value of B3 companies stood at R$5,684 billion on 23 October and fell to R$4,721 billion on 30 October, a decline of 16.94 percent, Elos Ayta said. Petrobras alone was estimated to be worth R$734 billion. Market value had climbed by R$972 billion between the end of 2025 and 23 October, with R$378 billion of that gain added after the first round of voting on 4 October.
The Ibovespa’s October decline reached 9.88 percent, its largest monthly drop since 2022. The index comprises 76 stocks. Few of them rose during the week; Suzano gained 17.05 percent, WEG rose 13.74 percent and Embraer climbed 13.41 percent.
Currency under pressure
The dollar closed the week up more than 9 percent against the real. It gained 5.20 percent in October and was up 0.81 percent for the year to date. Ricardo Chiumento of BS2 attributed the real’s slide mainly to investors who had positioned unilaterally for an opposition victory in the election.
Lucas Castro, co-founder and head of equities at Lince Investimentos, said the Brazilian market remained under pressure from the reflections of the election result, which caused a strong repricing of assets amid uncertainty about economic and fiscal policy. He said the movement was aggravated by the unwinding of positions of investors who had bet on an opposition victory, causing outflows and changes in expectations for the interest rate path.
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The re-election of Luiz Inácio Lula da Silva was held on the Sunday before the week under review. The repricing followed worsened expectations for interest rates and the fiscal situation.
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Source: Elos Ayta
