The first round of presidential elections has seen Brazil stock markets jump 5.3% since news of the vote results were announced.
After sealing the majority of the votes by 42%, President Dilma Rousseff’s victory was not enough to win outright meaning pro-business candidate Aecio Neves may still be in with a chance, clinching an unexpected 34% of votes and resulting in a run-off vote which is to be held on 26 October. The favourite, Marina Silva only managed to gain 21% of the votes meaning she is now out of the race.
The news sent the BRLA Investment Trust (which has a 64% weighting to Brazil stock markets) to the top of the FTSE, up by 6.7% creating the ultimate boost for investors. The past five years has been disappointing for BRLA shareholders seeing a near 6% decline even with dividends included.
With the success of either candidate dependant on gaining the support of Silva voters, the anticipated run-off vote between Neves and Rousseff will certainly lead to rallies in the countries stock market, whichever candidate prevails.
Source City Wire