See stocks that rose the most and the biggest falls on the Stock Exchange in 2022

The 4.69% increase in the Ibovespa in 2022 hides extreme results recorded by shares listed on the Brazilian Stock Exchange, including those that are not part of its reference index, according to a survey by the TradeMap platform with the shares that this year had higher daily movements to BRL 5 million.

Favored by the expectation of high oil and energy prices in general with the War in Ukraine, companies in the field of production, exploration and distribution of oil and gas were largely favored and appear among those with the best performance.

At the top of the list is Dommo Energia, Eike Batista’s former OGX, a company that went through judicial recovery and is now controlled by Prio, formerly called PetroRio. Recent changes in the company’s management and the deal itself with Prio, this year, contributed to the company exciting investors and registering an increase of close to 270% in 2022.

The second position on the list is with Cielo, which among the shares that are part of the Ibovespa obtained the best result. The 140% appreciation of the shares, however, is due less to a favorable situation and more to the company’s results, which achieved greater market penetration and controlled costs.

Fernando Ferreira, chief strategist at XP Investimentos, highlighted in his 2022 balance sheet that in addition to the oil and gas sector, the financial and public utilities sectors also showed strength.

It is the sector of basic goods and raw materials that is largely responsible, according to analysts, for the country to have obtained results on the Stock Exchange that are much better than the main stock markets, such as the American one, which ended 2022 with the worst result since the crisis of 2008.

“At the other end, the education, health and retail sectors delivered the worst returns. Names like [as varejistas] Magazine Luiza, Americanas and [a empresa de viagens] CVC continued to suffer from high interest rates and macroeconomic deterioration, repeating the movement since 2021”, reported Ferreira.

Among the shares that are part of the Ibovespa, the biggest drop is that of IRB Brasil, with a decline of almost 80%, given the distrust of the reinsurer’s ability to sustain itself in the face of consecutive losses.

In the TradeMap ranking, IRB was only behind the falls of Espaçolaser (aesthetic services) and Aeris, which manufactures equipment for wind energy generation. In the cases of these two companies, the market corrects prices considered overestimated in the still recent listings of these companies on the Stock Exchange.

The maintenance of interest rates at a high level by the Central Bank to control inflation —the Selic closed 2022 at 13.75%, for an annual IPCA estimated at 5.6%— is pointed out by analysts as largely responsible for having pushed the the bottom most of the companies with the worst results.

Nicolas Borsoi, chief economist at Nova Futura Investimentos, considers that this will also be a trend for 2022 and includes government-managed companies on the negative side of the estimates.

“Companies that depend on credit, such as technology and retail, and state-owned companies should remain in the spotlight. More than that, market volatility should remain high, which will require greater flexibility in the allocation of investors,” said Borsoi.

The intimidating scenario was responsible for the total absence of new initial public offerings on the Exchange, after almost 50 IPOs recorded in 2021 that moved around BRL 65 billion.

“The year 2022 was a challenging year for the Brazilian Stock Exchange and for the world, and promises strong emotions for 2023”, commented Idean Alves, partner and head of the trading desk at Ação Brasil.

For next year, according to Alves, the market is divided. On the one hand, he has the “hope for light at the end of the tunnel”, which basically means a slowdown in consumer prices in the world and, consequently, a reduction in credit rates, but on the other hand, he fears a “recession coming the economy, given the inflation and high interest rates that should be maintained in the coming months,” he said.