Cosan (CSAN) Continued to Slide This Week. Here is Why

Core Viewpoint - Cosan S.A. (NYSE:CSAN) has experienced a significant decline in share price, attributed to political uncertainty in Brazil following the endorsement of Senator Flavio Bolsonaro by former President Jair Bolsonaro for the upcoming presidential election [3][6]. Group 1: Share Price Movement - The share price of Cosan S.A. fell by 7.4% between December 17 and December 24, 2025, marking it as one of the energy stocks that lost the most during that week [1]. - Since the beginning of 2025, the share price of Cosan S.A. has decreased by over 34% [6]. Group 2: Political Context - The decline in Cosan's share price is linked to the unexpected political endorsement by former President Jair Bolsonaro, which has raised concerns about market-friendly policies and fiscal discipline [3]. - The Brazilian benchmark stock index Bovespa dropped over 4.3% on the same day of the political announcement, and the Brazilian Real weakened by as much as 3% against the US dollar [4]. Group 3: Senator Flavio Bolsonaro's Statements - Senator Flavio Bolsonaro's suggestion to potentially exit the presidential race for the right price added to market skepticism, although he later retracted this statement and reaffirmed his commitment to the candidacy [5]. - The senator has been engaging with business and finance leaders to address concerns regarding his economic policies [5].