Lula Election Win Sends Petrobras Down 24% as Reform Hopes Unwind
PBR sits 81% above its 52-week low of $11.43.
Summary
Lula defeated Flavio Bolsonaro in Sunday's runoff, a result investors did not expect after Brazilian equities had rallied on Bolsonaro's first-round lead and hopes for privatization and spending reform. Petrobras is taking the brunt of the unwind because the Brazilian government controls the company, and the stock was down 23.62% at $19.98 in premarket trading. The move erases the recent rally and puts shares 17.1% below the 20-day SMA of $24.18, though they remain above the 100-day SMA of $19.65. The $20 level is the line to hold; a sustained break below it opens further selling pressure, with $22 as resistance on any rebound.
At the time of this announcement, PBR was trading at $20.65 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $160.2B. The 52-week trading range was $11.43 to $26.39. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Benzinga.