Sao Paulo Stock Exchange suffers biggest plunge in 6 months

Xinhua
29 Oct 2020, 12:30 GMT+10

SAO PAULO, Oct. 28 (Xinhua) -- The Sao Paulo Stock Exchange, the main financial center in Latin America, plunged 4.25 percent on Wednesday, its biggest drop in six months.

The Bovespa index of the Brazilian stock market closed at 95,368.76 points, its worst single-day drop since it fell 5.45 percent on April 24, influenced by the global impact of economic shutdowns in European countries suffering a second wave of COVID-19.

The biggest loser of the day was electronic payments company Cielo, whose shares fell 11.6 percent, followed by companies specializing in tourism and travel, as a result of the return to confinement and lockdowns in Europe, especially in France and Germany.

Shares of Brazilian tourism agency CVC fell 9.88 percent, while those of Azul and Gol airlines fell 9.58 and 9.03 percent respectively.

The U.S. dollar, meanwhile, shot up more than 2 percent at the start of trading and closed with an increase of 1.43 percent to trade at 5.79 reals, marking the real's biggest slide since May 15.

The Central Bank of Brazil has intervened, selling 1.042 billion U.S. dollars to prop up the real.

So far this month, the dollar has appreciated 2.52 percent. Since the beginning of 2020, it has appreciated 43.65 percent.

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