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The Brazilian stock market ended the week with BOVA11 down 0.90%. SCVB11 advanced 1.30%, opening a 2.20 percentage point advantage over the Ibovespa ETF. The movement had an identifiable driver within the portfolio: Magazine Luiza surged 15.56% between the two Fridays. The retailer represented 6.53% of the disclosed portfolio composition for the small-cap value fund.
The rally in MGLU3 gathered momentum starting Wednesday, following the revocation of an Anvisa measure that restricted the marketing, distribution, and advertising of pharmaceuticals on the company’s platform. The decision removed a specific restriction; it does not equate to an unrestricted authorization for any sales format. The stock’s reaction, combined with gains in Simpar and Minerva, helped SCVB11 overcome losses in other significant holdings, such as Cury, Orizon, and Pague Menos.
A Week of Interest Rates, Inflation, and Corporate News
The Central Bank had cut the Selic rate by 0.25 percentage points to 13.75% per annum at its meeting ending September 16. The minutes published on Tuesday, September 22, described slowing economic activity but maintained a cautious outlook on inflation and upcoming monetary policy steps. For companies exposed to consumer spending and credit, the expected path of interest rates remains critical: it impacts funding costs and the present value of future earnings. However, the presence of a rate-cutting cycle did not cause all domestic-economy-sensitive stocks to rise together.
On Friday, the mid-month inflation index (IPCA-15) for September came in at 0.70%, following a 0.40% deflation reading in August. The data placed inflation back at the center of market evaluations regarding the pace of future rate cuts. In the same session, MGLU3 advanced 7.30%.
SCVB11 (Investo): +1.30%
SCVB11 tracks the MarketVector Brazil Small-Cap Value Index, which combines lower market capitalization with fundamentalist value criteria. Investo’s disclosed portfolio features Minerva at 7.90%, Magazine Luiza at 6.53%, Orizon at 6.01%, Cury at 4.36%, and Simpar at 3.95%. Cyclical consumer spending accounted for 35.54% and industrials for 24.66%.
Magazine Luiza was the strongest pillar among top positions. From Tuesday, September 22, to Friday, September 25, the stock rose from R$ 5.90 to R$ 6.76, a 14.58% gain concentrated after the Anvisa decision was published. Over the full weekly window, it gained 15.56%.
There were other drivers. Simpar advanced 9.17% on the week and Minerva gained 3.52%. The fund’s exposure to transportation and logistics via Simpar and animal protein via Minerva helped diversify growth drivers beyond retail.
On the downside, portfolio losses were significant. Cury fell 5.16% and Orizon declined 2.66% over the same window. Pague Menos dropped 8.94% and Sanepar lost 3.36%.
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SMAC11 (Itaú Asset): +0.49%
SMAC11 tracks B3’s Small Cap Index. While Magazine Luiza jumped 15.56% on the week, it accounted for roughly 0.79% of the disclosed theoretical portfolio. In SCVB11, Magalu’s disclosed weight was 6.53%. This weighting difference explains why the two small-cap ETFs finished the week with contrasting results.
SMAC11’s gain was supported by other holdings: Copasa advanced 2.35%, Assaí rose 2.24%, and Totvs gained 1.75%. Smart Fit and Multiplan also rallied. On the other hand, declines in Cury (-5.16%), Sanepar (-3.36%), Taesa (-2.67%), and Metalúrgica Gerdau (-2.19%) capped total gains.
BOVA11 (BlackRock): -0.90%
In BOVA11, the primary drag was the Ibovespa’s heavy concentration in mega-cap positions that declined. Vale represented 10.15% of the theoretical portfolio and lost 3.54% on the week. Banco do Brasil fell 6.94%, PRIO dropped 6.15%, and both PETR3 and PETR4 closed below the previous Friday’s levels.
Commodity market dynamics help contextualize the pressure on this segment of the portfolio: Chinese steel production in August came in 3.7% below the previous year’s level (data published September 24); Brent crude fell from $119.66 on September 18 to $114.89 on September 22.
On Friday, September IPCA-15 reached 0.70%, following -0.40% in August. B3 and Axia Energia rose and offered counterweights, but were insufficient to offset losses in the aforementioned heavyweights.
This content is for informational and educational purposes only and does not constitute an investment recommendation.
