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Brazil’s largest oil company Petrobras shares fall more than 10% after Lula wins

The American depositary receipts (ADRs) of Petrobras, Brazil’s largest oil company, fell more than 10% after Luiz Inácio Lula da Silva won the presidential runoff. Investor's Business Daily reported that its PBR shares fell about 12%.

According to InfoMoney data, Petrobras ordinary share ADRs (PBR) fell as much as 11.96%, while preferred share ADRs (PBR-A) fell 10.33%. At the same time, the EWZ ETF tracking Brazilian stocks fell nearly 20% in after-hours trading. Before the Brazilian local market opened on Monday, investors were watching expectations for policy continuity and state-owned enterprise governance.

Original sources:

  1. Title: Brazil Stocks Dive As President Lula Wins Re-Election Publisher: Investor's Business Daily Publication date: 2026-10-25 URL: https://www.investors.com/news/brazil-stocks-dive-as-president-lula-wins-re-election/ Source type: news report Verification: read in this session Supporting content: Petrobras (PBR) fell about 12%; EWZ fell about 18%

  2. Title: ETF do Brasil no exterior EWZ cai quase 20% no aftermarket com reeleição de Lula Publisher: InfoMoney Publication date: 2026-10-25 URL: https://www.infomoney.com.br/mercados/etf-do-brasil-no-exterior-ewz-cai-quase-20-no-aftermarket-com-reeleicao-de-lula/ Source type: news report Verification: read in this session, cross-checked with IBD Supporting content: Petrobras ADRs fell 11.96% and 10.33%; EWZ fell 18.53%

ABAB AI Insight

As a state-controlled company, Petrobras’s share price is sensitive to expectations about government policy. After Lula’s victory, uncertainty rose over fuel pricing, dividend policy and management appointments. Historically, similar election outcomes have triggered short-term adjustments in the company’s share price.

After-hours trading mainly takes place in the U.S. ADR market. Actual trading volume and pricing after the Brazilian local exchange opens on Monday remain to be seen. The larger decline in instruments such as EWZ reflects a broader repricing of risk in Brazilian assets.

Investors are pricing the policy path rather than any already-occurred change in the company’s fundamentals. Oil prices, exchange rates and fiscal expectations all affect pricing. Follow-up points include the company’s official statement and details of the new government’s energy policy.

ABAB News · Cognitive Law

  1. State-owned enterprise share prices react to election results faster than policies are implemented.

  2. After-hours ADR prices reflect the immediate risk appetite of external investors and are time-lagged relative to local market pricing.

  3. The decline in a single company does not fully move in sync with the decline in a broad national-asset ETF.