Magazine Luiza jumps 28.12% to R$ 9.75 after Brazil vote

Shares of Brazilian retailer Magazine Luiza jumped 28.12% to R$ 9.75 around 12:20 Brasília time on Monday, October 5, 2026. The stock led gains on the Ibovespa benchmark index during a session dominated by domestic cyclical companies.

The market moved following the first round of Brazil's presidential election. Senator Flávio Bolsonaro took 47.03% of valid votes, while incumbent President Luiz Inácio Lula da Silva received 45.16%. The two candidates face a runoff on October 25, 2026, alongside published Senate results that showed strong growth for the PL and allied parties.

Other cyclical stocks also recorded sharp gains during the session. Localiza rose 20.93%, Vamos climbed 19.62%, Smart Fit gained 18.66%, Assaí added 18.65%, Lojas Renner climbed 18.37%, and homebuilder MRV advanced 16.87%, with C&A also among the rising cyclical names.

Analyst Gabriel Mollo of Daycoval explained that the first-round outcome beat polling expectations, driving lower future interest rates, an appreciating Brazilian real, and lower risk premiums that benefit domestic companies sensitive to capital costs. However, Mollo warned that sustaining this movement depends on concrete signals regarding fiscal policy and economic reforms ahead of a potentially volatile runoff.