Stock Markets January 28, 2026

Bovespa Climbs to Record Close as Financials, Materials and Real Estate Lead Gains

Brazilian benchmark posts 1.15% advance; individual stocks show wide dispersion amid rising volatility and commodity moves

By Jordan Park
Bovespa Climbs to Record Close as Financials, Materials and Real Estate Lead Gains

The Bovespa index closed higher Wednesday, rising 1.15% to reach a fresh all-time high as strength in the Financials, Basic Materials and Real Estate sectors powered the advance. A group of mid- and small-cap stocks recorded notable intraday gains, while several large names finished lower. Market breadth favored advancers and volatility gauges edged up alongside shifts in commodity prices and currency pairs.

Key Points

  • Bovespa rose 1.15% to close at a new all-time high, led by gains in Financials, Basic Materials and Real Estate.
  • Top individual gainers included RAIZ4 (+16.67%), CEAB3 (+7.73%) and USIM5 (+6.88%); laggards included EMBJ3 (-3.79%), CPFE3 (-3.41%) and WEGE3 (-2.98%).
  • Market breadth favored winners (488 advancers vs. 442 decliners) while the CBOE Brazil ETF Volatility index climbed to a one-month high, and several commodities and currency pairs moved significantly.

Brazilian equities ended Wednesday's session with a clear upward bias, as the Bovespa index added 1.15% to finish at a new record closing level. The market's advance was led by gains in the Financials, Basic Materials and Real Estate sectors, which collectively underpinned the rally in Sao Paulo.

The day's top performers included Raizen SA Preferred (BVMF:RAIZ4), which surged 16.67% - a rise of 0.15 points - to close at 1.05. C A Modas SA (BVMF:CEAB3) climbed 7.73%, or 0.89 points, to end trading at 12.40. Usinas Siderurgicas de Minas Gerais SA USIMINAS Pref (BVMF:USIM5) advanced 6.88%, gaining 0.45 points to finish at 6.99.

Not all stocks participated in the rally. Embraer SA (BVMF:EMBJ3) was among the session's laggards, retreating 3.79% - a drop of 3.92 points - to close at 99.50. CPFL Energia SA (BVMF:CPFE3) declined 3.41%, down 1.86 points to 52.74, while WEG SA (BVMF:WEGE3) lost 2.98% or 1.57 points to finish at 51.13.

Market breadth was tilted in favor of advancing shares, with 488 stocks rising versus 442 that fell on the B3 exchange; 61 issues ended unchanged. Notably, USIMINAS Pref (BVMF:USIM5) registered a new 52-week high as it climbed 6.88% to 6.99, matching the session's reported gain.

Volatility measures also moved higher during the session. The CBOE Brazil ETF Volatility index, which tracks the implied volatility of Bovespa options, rose 5.01% to 32.46, marking a one-month high for the gauge.

Commodity prices and currency pairs showed mixed direction, reflecting cross-market dynamics that accompanied the equity move. Gold Futures for April delivery rose 5.23%, gaining 267.61 to trade at $5,388.21 a troy ounce. March crude oil futures increased 1.60%, up 1.00 to $63.39 a barrel. By contrast, the March US coffee C contract slid 4.42% - down 16.25 - to $351.00.

Exchange rates moved modestly: USD/BRL strengthened by 0.37% to 5.20, while EUR/BRL eased 0.34% to 6.21. The US Dollar Index Futures was up 0.20% at 96.24 at the time of the close.


Context and implications - The session combined sector rotation toward Financials, Basic Materials and Real Estate with elevated option-implied volatility and notable commodity price moves. Together, those dynamics produced a marketwide advance that left the Bovespa at its highest closing level on record.

Risks

  • Rising implied volatility in the CBOE Brazil ETF Volatility index - up 5.01% to 32.46 - signals greater option-implied uncertainty that can affect Financials and broader market sentiment.
  • Volatility in commodity prices, exemplified by a 5.23% jump in April gold futures and a 4.42% drop in March coffee, can create headwinds or tailwinds for Basic Materials and related sectors.
  • Currency swings - USD/BRL strengthening 0.37% to 5.20 and EUR/BRL slipping 0.34% to 6.21 - introduce exchange-rate risk for exporters, importers and companies with significant foreign-currency exposure.

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