Petrobras lost R$74.2 billion [US$ 14 billion] in market value this Monday (22) after a sharp drop in its shares on the Brazilian Stock Exchange. Added to the devaluation of R$28.2 billion [US$ 5.2 billion] last Friday (19), the fall of the state-owned company with the intervention of Jair Bolsonaro totals R$102.4 billion [US$ 19 billion].
The government's imbroglio with Petrobras started on Friday night (19), when Bolsonaro announced that he would nominate General Joaquim Silva e Luna to take over as president of Petrobras.
The Securities and Exchange Commission opened an investigation into Petrobras after the announcement. Under Brazilian corporate law, companies listed on the stock exchange must communicate important information like this through a material fact, which did not happen.
Petrobras' shareholders are following expert advice to wait as it does not appear to be a good idea to buy the stock at the moment. The market also fears further interference in state-owned companies in other sectors.
Translated by Kiratiana Freelon