The market read BB's earnings and sold: the stock fell 8.35%, the Ibovespa's biggest drop
The day after a 66% profit drop driven by farm defaults, BBAS3 led the losers. The Ibovespa closed at 171,000 points.
To save you time3
- How much did the stock fall?
- 8.35% on Thursday (12th), the biggest drop among Ibovespa stocks.
- Why?
- Q3 results showed a 66% profit drop driven by farm defaults, plus a lower payout.
- And the broader market?
- The Ibovespa fell 0.43% to 171,324 points and the dollar rose 1.62% to R$5.65 on fiscal doubts.
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The market didn't wait: the day after earnings, Banco do Brasil shares fell 8.35%: the Ibovespa's biggest drop.
What investors saw
- Q3 profit 66% lower, driven by farm defaults.
- 90-day rural delinquency near 7%.
- Payout cut from 30% to 25%.
The backdrop
It was already a bad day: the Ibovespa fell 0.43% to 171,324 and the dollar rose 1.62% to R$5.65, on fiscal doubts and high US rates.
What I would watch
The drop prices in a delinquency cycle that doesn't end this quarter and lower dividends. For agribusiness, the message is the same as the earnings: the biggest farm lender will stay selective, leaving room for CPR, Fiagro and trader credit.
