Why These Energy Stocks are Losing This Week

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6. Ultrapar Participações S.A. (NYSE:UGP)

Share Price Decline Between Dec. 3 – Dec. 10: 8.04%

Ultrapar Participações S.A. (NYSE: UGP), through its subsidiaries, operates in the energy, mobility, and infrastructure sectors in Brazil.

Ultrapar Participações S.A. (NYSE:UGP) was among the Brazilian stocks that fell on December 5 after it was reported that former President Jair Bolsonaro intends to back his son, Senator Flavio Bolsonaro, in the presidential elections next October. The report was confirmed by the senator himself in a social media post, and also by the head of Bolsonaro’s right-wing Liberal Party. The news caused a slump in the Brazilian market, with the country’s benchmark stock index, Bovespa, falling by over 4.3%, as investors had hoped that Bolsonaro would nominate a more market-friendly candidate with executive experience, such as São Paulo Governor Tarcisio de Freitas.

In other news, according to the latest figures from the statistics agency IBGE earlier this month, Brazil’s economy experienced slower-than-expected growth in the third quarter as high interest rates weighed on services and consumer spending, setting the stage for an easing early next year.

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