Jan. 2 (Bloomberg) -- Cielo SA, Brazil’s biggest card- payment processor by market value, rose to a one-month high after Bradesco Corretora added the stock to its recommended portfolio as competition concern fade.
Shares gained 1.3 percent to 48.82 reais at 2:45 p.m. in Sao Paulo, the highest intraday price since Dec. 2. The benchmark Bovespa index climbed 0.7 percent.
“Competition is unlikely to destabilize the market,” Bradesco analysts including Carlos Firetti, head of equity research, wrote in a note to clients today. “We believe the bulk of renegotiations with large merchants is over.”
Net fees Cielo charges retailers to process debit and credit cards payments, known as the merchant discount rate, or MDR, fell to 1.03 percent in the third quarter from 1.21 percent a year earlier, the company said in a statement Nov. 1.
--Editor: Marie-France Han
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