QUICK SPARK: Brazil's Retail Broker XP Notches Best Day Ever, Tops Russell 1000 Performers
Piero Cingari 3 weeks ago
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XP Inc. jumped 34% to its best day ever, leading the Russell 1000 after Flávio Bolsonaro won the first round of Brazil's presidential vote.
Brazil voted on Sunday; on Monday, a São Paulo broker posted its best session in Wall Street history.
XP Inc. (NASDAQ:XP) jumped 32.8% to $28.25 on Monday afternoon, leading the Russell 1000 just ahead of PTC Inc. (NASDAQ:PTC).
That beats the previous record, a 26.4% rally on March 13, 2020, and lifts the stock to its highest level since April 2022.
Flávio Bolsonaro took about 47% of the first-round vote, against 45.2% for President Luiz Inácio Lula da Silva. The two now face an Oct. 25 runoff.
Investors see Bolsonaro as more likely to cut spending. Less fiscal risk can bring lower interest rates. Lower rates push savers from bank deposits toward stocks and funds, and that business runs through brokers like XP.
The iShares MSCI Brazil ETF (NYSE:EWZ) rose 13.3%.
XP shares are now up 76% this year.
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