Ibovespa hits record high for 11th consecutive day.

Brazilian stock market surpasses 157,000 points in an unprecedented sequence since 1997.

The Brazilian Stock Exchange (Ibovespa) renewed its historical record this Tuesday, November 11th, closing the trading session above 155,000 points and reaching highs of 157,800 points during the day. The index now accumulates 11 consecutive trading sessions of records and 14 consecutive days of gains, marking the longest winning streak since 1997.

The impressive performance reflects a recovery movement that has lifted the stock market by 29% in reais (almost 50% in dollars) in a recent period. At Tuesday's close, the Ibovespa rose 0.77%, with most stocks trading higher.

Trading session highlights

Among the stocks that rose the most, Lojas Renner stands out with gains of 3.941% per day (TP3T), Rizen with an advance of 3.51% per day (TP3T), and Magazine Luiza (Magalu) with a rise of 3.44% per day (TP3T). Other relevant stocks also showed significant gains: CVC rose 6% per day (TP3T), Localiza advanced 5.87% per day (TP3T), and BTG Pactual gained 4.16% per day (TP3T).

On the other hand, few stocks traded lower. Natura plummeted 15%, while Porto Seguro fell 2,97%, Red Door retreated 1,57%, and BB Seguridade lost 1,54%.

Favorable economic context

The US Senate's approval to end the shutdown contributed to optimism in global markets. Domestically, consumer inflation slowed in Brazil in October, with the IPCA rising only 0.09%, marking the lowest increase for the month since 1998.

Brazil's trade balance also shows positive signs. Up to the first week of November, the trade flow reached US$540.8 billion, with a surplus of US$1.811 billion. Exports totaled US$7.8 billion and imports US$5.9 billion, representing growth of 7.11% in the trade flow compared to the same period in 2024.

Skepticism among managers

Despite the impressive figures, there is distrust among local investors regarding the sustainability of the rise. Analysts point out that the country faces high interest rates, political uncertainty, and structural problems that do not fully justify the appreciation. Some managers, such as UBS, believe that better returns are in technology in the US and Asia, not in Brazilian commodities.

The consensus among experts is that this is a short-term rally driven by external flows, not by structural confidence in the country's fundamentals. When this flow changes direction, the stock market could experience rapid declines.

Photo by Vadim Shevyrin on Unsplash