- The stock price of Centrais Eletricas Brasileiras Eletrobras (NYSE: EBR) increased by over 15% during intraday trading. This is why it happened.
The stock price of Brazilian electric utility company Centrais Eletricas Brasileiras Eletrobras (NYSE: EBR) increased by over 15% during intraday trading as it went from a previous close of $5.24 to a day high of $6.04. Investors are responding to a Reuters report that Brazil’s government is working to publish a provisional measure associated with plans to privatize Eletrobras. Reuters said it has 3 sources with knowledge of the deal.
This provisional measure would enable development bank BNDES to work on the privatization of the company. This news is likely going to appear in an extraordinary edition of the federal gazette today. And one of Reuters’ sources said that should “signal” to the market about President Jair Bolsonaro’s commitment to the sale following his decision to change the CEO of state-run Petrobras led to doubts around divestiture plans.
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