2017.11.1909:39:00UTC+00BRAZIL: Ibovespa Rises After Government Releases R$7 Bn For Ministries

Ibovespa, the benchmark stock index in Brazil, rose 1.27%, closing at 73,437.27 points Friday after the Brazilian government increased by R$ 7.515 billion the release of budget resources for ministries.

The move is seen as a move by President Michel Temer to bargain the pension reform bill approval with allied parties. The Ibovespa gained 1.76% in the week.

"It's clear that the government is releasing the money to get a vote. It's a quid pro quo. Because if you enter the new year, you do not approve anything. The government has to do it now," said Jos? Costa, an economist at Codepe Corretora.

According to DNAinvest partner Alfredo Sequeira, the commodities rise abroad helped push the index up. "Oil has risen more than 2%, which has helped Petrobras to recover, and on Tuesday stock options will expire, which has helped to buy some stocks," said Sequeira.

The locally traded U.S. dollar closed down for the second straight day (-0.48%), quoted at R$ 3.264. The greenback accelerated the low in the afternoon with an increase in oil prices and expectations regarding the approval of the pension reform bill by the Brazilian Congress.

"Today, everything has helped: commodities have been pulling out there, and there is greater hope for pension reform," said Treviso Corretora exchange manager Reginaldo Galhardo.

For the next week, Costa indicates that it is possible that the upward trend may continue in the index since the market already works with the certainty that at least part of the pension reform will be approved in Congress. Sequeira points out to a possible fall after the expiration of stock options. The Ibovespa will reopen only on next Tuesday, due to a local holiday on Monday.