Frightened by the drop in Eletrobras stock? understand the turmoil

Since Eletrobras fixed the unit price of R$42 for its common shares last Thursday (9), the shares of the largest electric company in Latin America have sunk 6.83% in just two trading sessions of B3, the Brazilian Stock Exchange.

On Friday (10), the fall of 4.74% was attributed to the market adjustment to the initial value of the offer, since the paper had been quoted the day before at R$ 43.04. On Monday (13), the day when the shares issued in the public offering began to be traded, there was a drop of 2.20%.

Those who came into contact with the Exchange for the first time due to the capitalization of Eletrobras may be wondering if they got a good deal. The answer will only come with time, but analysts say that the investment is promising, especially if thought for the long term.

For these new investors, it is worth remembering that investments in variable income, such as the stock market, do not have that name by chance. Several factors can make a stock significantly lose or gain value in a single day.

In the case of Eletrobras, in addition to the issues mentioned above about the adjustment to the pricing of securities, it is necessary to consider that the public offering took place at a time of turmoil in the stock market.

Stocks around the world operate lower on fears that global inflation, caused by the Covid pandemic and boosted by the Ukrainian War, will push the global economy into a recession. It is not possible to say whether this will occur or when the crisis will be resolved.

The unfavorable global scenario also does not mean that Eletrobras is condemned to melt while there is no way out of the crisis.

Paulo Henrique Duarte, economist at Valor Investimentos, says that there was “success in the capitalization of Eletrobras”, with the movement of more than R$ 29 billion, and that this “showed that the market has an appetite to invest in good assets” even at times like the current one.

Duarte says that, from now on, the performance of the company’s shares will also depend on the next steps it will take in terms of investments, reduction of expenses and the adoption of good governance practices.

Despite the unpredictability of the future, the scenario seen in the rearview mirror reinforces the economist’s statement: since January, while the Brazilian Stock Exchange has dropped 2.73%, Eletrobras’ common shares have risen 20%.

In addition, the energy sector is among the most resistant to market variations.

But when experts say that the stock market is a long-term investment, they are not talking about a gap of a few months.

Ivens Gasparotto, director of consultancy Suno, considers that the stock market is for those who think of obtaining a return in at least ten years, because it is unlikely that in that interval the investment will result in a loss.

It’s the exact opposite of the quick profit that many beginners in this market expect.

Despite the daily fluctuations, Gasparotto says that investors should think of investing in the stock market as “something like planting a tree and waiting for it to grow”, he says. “It’s extremely monotonous.”

Share purchased with FGTS can be sold after 12 months

For those who invested the FGTS, the shares can be sold after 12 months. But if the worker fits into one of the situations in which the legislation allows the withdrawal of the Guarantee Fund, he will be able to sell the papers before.

Among these situations are the purchase of a home, dismissal without just cause, retirement and the three-year interval without FGTS deposits (see the 16 situations here).

If he is dismissed without just cause, he will still have a fine of 40% calculated on the entire balance of the company’s account in the fund, also adding up what he invested in Eletrobras.

In addition, the worker who invested part of the FGTS in Eletrobras shares may choose to keep the investment in the shares even if he is fired, retires or enters into another situation of withdrawal from the fund permitted by law.