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Should an investor take advantage of today’s 10.7% drop to buy the stock? – Money Times

Magazine Luiza
Magazine Luiza’s 10.7% drop is not a buying opportunity, understand (Image: Renan Dantas/Money Times)

The actions of Magazine Luiza (MGLU3) had the second biggest drop in the Ibovespa (IBOV) this Thursday (5). The shares fell 10.71% and ended the day at R$4.42.

For Vitreo analyst Filipe Fradinho, today’s drop is a correction of the previous day’s high, when the stock jumped 7.61% after the market got excited about the Federal Reserve decisionUS central bank.

He also explains that, just yesterday, the Central Bank of Brazil increased the interest rate by 1 percentage point and waved a new high at the next meeting, which didn’t help the industry much.

“So, the sum of the factors of the correction of the day before with the interest rising here in Brazil, generate the great fall of today”, he explains.

About buying the share, the analyst maintains the same expectations mentioned earlier this week, it is not time to buy Magazine Luiza.

“Retail has a clear downward trend, and the sector will not see an improvement in the short-term perspective, precisely because of the high interest rates”, Fradinho estimates.

In turbulent for Magazine Luiza, Gerdau Metalúrgica rises

The actions of Gerdau Metalúrgica (GOAU4) had the biggest rise of the Ibovespa this Thursday. The asset jumped 3.63% and closed the trading session at R$ 11.71.

According to Fradinho, today’s increase takes place after the company announced the result. The company reported a 20% increase in net income for the first quarter of 2022totaling R$ 2.95 billion.

“The balance sheet came a lot and the numbers gave a tone that Gerdau Siderúrgica has less exposure to China”, he explains.

About investing in the stock, the expert recommends buying, but does not cite a specific target price.

See the biggest hikes of the day:

Company ticker Variation
Gerdau Metalúrgica GOAU4 +3.63%
suzano SUZB3 +2.69%
Gerdau GGBR4 +2.33%
klabin KLBN11 +1.17%
There were no more highs X X

See the biggest drops of the day:

Company ticker Variation
Totvs TOTS3 −11.12%
Magazine Luiza MGLU3 −10.71%
Inter BIDI11 −9.36%
sky CIEL3 −8.77%
hapvida HAPV3 −7.70%

See the most traded stocks of the day:

Company ticker Variation
Petrobras PETR4 −0.19%
OK VALE3 −1.81%
Itaú Unibanco ITUB4 −2.31%
Petrobras PETR3 −0.66%
Bradesco BBDC4 −3.27%

Disclaimer

THE Money Times publishes articles of a journalistic nature, which aim at the democratization of information. Our publications must be understood as announcing and disseminating bulletins, and not as an investment recommendation..

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