Not even Cedears worked as a hedge in September, except for a couple of oil companies

Cedears had a terrible September, in line with global markets that recorded losses both in Europe and on Wall Street. The oil companieshowever, stood out among the general falls in view of the sharp rise in the barrel of oil due to supply cuts at times where demand could exceed supply.

The main declines were led by the Chinese automotive company NIO (-15%), the mining company Barrick Gold (-8.4%), and the technology company Nvidia (-8.1%). Let’s analice each one of them.

Chinese stocks were hit this month by concerns about the growth of the world’s second-largest economy. The fall of Evergrande put in check China since the real estate and construction sector were a pillar of the country’s growth – it represents a quarter of the GDP – and experienced a strong boom in recent decades.

Regarding the mining Barrick Goldthe drop in its price is due to the loss suffered by gold bullion in September. This metal recorded the worst fall in seven months. The reasons? The Fed maintained reference interest rates at the current level but did not rule out validating a new increase before the end of the year. Gold, considered a hedge asset, does not pay interest, which loses appetite in times of high rates.

Lastly, the technological Nvidia It was the paper that rose the most so far this year, with an extraordinary gain of 618.5%, since it was the protagonist of the Artificial Intelligence boom, especially in the first semester. Its decline is probably due to profit taking. His fall is also in tune with the Nasdaq which recorded its second month of losses, in September, for example, of 5.1%.

The main increases were for Vista Energy (+15.8%) and Petrobras (+5.3%). Behind the causes is, on the one hand, the price of a barrel of oil, which rose 28% in the quarter, and on the other, the good projections of the companies. In the case of Petrobras, from Adcap, said that it is one of the preferred companies to invest in the neighboring country’s market.

For its part, Vista held its second Investor Day this week where the update of its 2024-2026 strategic plan was announced.. When compared to the plan presented in December 2021, The update improves the estimates with respect to all relevant variables.

“Even in the face of a negative scenario where the company makes its sales at an average price of US$55 per barrel, Vista estimates that it will be able to maintain its production growth target and will be able, at the same time, to achieve an accumulated cash generation of US$400m by 2026,” PPI explained.