BRAZIL: Ibovespa Rises, But Worries Remain About Pension Reform

(RTTNews) - Ibovespa, the benchmark stock index in Brazil, closed up 0.33% at 72,731.84 points Friday, tracking markets abroad and boosted by expectations on the pension reform's approval by the Brazilian House of Representatives still in 2017. However, the index lost strength near the end of the session as investors turned skeptical on the reform prospects. In the week, after strong volatility, the Ibovespa rose 0.65%.

"It's all speculation, and I believe that investors are becoming more skeptical. It would have to be very positive news for the market to reassure itself, but the possibilities are running out," said the economist Matheus Bantel, from Florença Investimentos.

Ignacio Crespo Rey, an economist at Guide Investimentos, recalls that although the minister's exit may help the government to lift votes from the political center, it also cast doubts about the PSDB behavior. The party is to hold a national convention during the weekend.

Meanwhile, the locally traded U.S. dollar closed up 0.27%, at R$ 3.296, driven by worries about the pension reform after Imbassahy's departure.

Over the next week, investors should continue to monitor the government's negotiations to approve the pension reform still this year.