Brazilian Stocks Stop Bleeding and Get Slight Jump

Brazil's Bovespa After a gray Tuesday, which saw the Brazilian stock suffer its worst tumble in four months, the Bovespa, São Paulo's Stock Market showed some light recovery with the Ibovespa, the Bovespa's main index going up 0.28%. The fall the previous day had been of 2.88%. The market closed this Wednesday at 65,485 points.

The main responsible for the upswing was the great performance of companies linked to raw material, like Petrobras and Vale.

Investors are now attentive to the decision to be taken later today by the Copom, Brazil's Monetary Policy Committee, which is expected to announce the new Selic, Brazil's basic rate of interest.

On Tuesday, Brazil's stock market suffered one of its worst one-day plunges and the currency sank after the government imposed a tax on foreign investments in local stocks and bonds. The Bovespa dropped 2.88% to 65,303.11, after closing at its strongest level since June 2008 the previous session.

The decline in the index was the biggest since it lost 2.5% on August 17. The real meantime slid 2.1% to 1.7547 per dollar, the lowest in two weeks.

Finance Minister Guido Mantega announced Monday the government would charge a 2% financial transactions tax on foreign investments in Brazilian stocks and fixed-income securities in a bid to prevent the country's currency from strengthening further.

But Bovespa also announced plans to press the Brazilian government for alternative ways to curb gains in the currency. The levy, higher than a 1.5% tax scrapped a year ago that didn't cover stocks, will hurt Brazilian investors and small- and medium-sized companies, according to Carlos Kawall, chief financial officer of Sao Paulo-based BM&FBovespa.

"We need to do everything we can from now on, talking to the government, getting support from everyone who sees that this is something that is definitely faulty and could be altered," Kawall, a former Treasury Secretary who served under Mantega in 2006, said during a conference call.

International investors, who account for about a third of Bovespa's stock trading, will likely buy US depositary receipts, punishing smaller Brazilian companies who can't afford the costs of listing overseas, Kawall said. The fact that money raised through ADRs is seen as direct investment and isn't taxed, while local capital raising will be subject to the levy, is one of the "inconsistencies" in the regulation, he said.

Mantega said on Monday that the measure seeks to curb gains in the Real, which has strengthened the most of any major currency this year on the back of higher commodity prices, a credit rating upgrade from Moody's Investors Service and forecasts for faster economic growth.

The tax will reduce the efficiency of Brazil's capital markets and "divert" money needed to finance the country's economic growth, according to a statement signed by BM&FBovespa and groups representing Brazil's pension funds, publicly traded companies and investment banking industry.

"So who gets hurt? We get hurt and that's what markets are suggesting today," Kawall said on yesterday's call. "Local small- and medium-cap companies get hurt because they cannot deal with the cost of issuing ADRs. The local investor gets hurt because they might have less liquidity here over time if this measure prevails".



  • Show Comments (21)

  • ch.c.

    Furthermore, to Bambu the idiot….1000000 % sure brazilians mens are the world best and most handsome !
    Here is a few more comments on your APPARENT charms, not written by me but in articles in THIS SITE, wether you like or not :

    – In Brazil, a Culture of Violence Sees Wife-Beating as No Big Deal
    Written by Joe Moreira da Silva
    Thursday, 18 June 2009

    feel free to scroll AND READ…idiot and pretentious Bambu ! My middle name is TEAK ! My first name is BAOBAB !

    – another article
    A 2004 document released by the UN-Habitat reveals that Brazil has one of the highest levels of incidents described as rape, attempted rape, and indecent assault against women in the world. The report also states that such violent crimes are usually underreported, and the perpetrators unlikely to be punished.

    – another one SPECIFICALLY just for you Handsome BRA-ZERO BAMBU :

    Sex Abuse Against Kids in Brazil Is Usually All in the Family
    Written by FÀƒ¡bio Calvetti
    Thursday, 25 August 2005

    Just scroll and read !

    AND WHAT ABOUT THE BRAZILIANS HANDSOME MAAAAAALES PRACTICES having sex with over 500’000 minors…forced into prostitution ?

    Whoaaaaaaaa !!!!!!!
    What a charm. How handsome you are. Irresistible you are. RIGHT ?
    Hiding the truth remains a sad brazilian reality !

    Yessssss Bambu the Sexually Degenerated….. please tell us your sources of your research……IDIOT, WOMEN BEATER, RAPER OF YOUR OWN CHILDREN OR LITTLE SISTERS OR NIECES…LET ALONE HAVING SEX WITH MINORS FORCED INTO PROSTITUTION !

    Looks like you put your mind inside your balls….BAMBU !

    You are mentally DISCONNECTED !

  • ch.c.

    To all !
    I was obviously not the one who wrote anything …ABOVE !

    NOW :
    1) Why dont you refer to Shelly1 comments ? Hmmmmm Hmmmmm…you ego was hit ! Come up and answer !
    2) As I stated in another thread….Why are they so many Trannies in Brazil ? so that Bra-ZERO maaaaaaaales can form HETERO couples ???
    SOMETHING doesnt add up ! tell me what !
    In my view…you like it big & deep…in Your back !

    Dont worry, your politicians know this. This is why they F..k you…time and again !
    Cant you see Robbing Hook smiles ?
    Of course not……. when you bend and he is in your back !
    And you like it so much, that you re-elected him…of course.

    Ohhhhh my….ohhhhhh my……

    And to the idiot Bambu “All girls, foreign or not, all agree Brazilian men are the most handsome and the nicest in the world “

    Please provide the source of your apparent research !

    Because if right you are, why are so many brazilians women getting out of Brazil and not so many foreign women going to Brazil ?????

    Outside of this….Ohhhhh yessssssss……brazilians mens are so handsome….when wearing their Yellow & Green T-shirts, their flip flops……. And their head caps they dont even take out while inside a house, during office hours, in a restaurant, or in bed while sleeping !

    I bet you too Bambu !

    So charming and attracting your Play Boy clothes…. to pick ALL WOMEN ON EARTH !!!!!!!

    Keep caressing your navel and scratching your balls !

    Laughs….laughs….laughs….laughs…LAUGHS….LAUGHS….LAUGHS !

    And my smaaaaacks to Shelly ChÀƒ©rie !

  • ch.c.

    It looks like from what additional infos that came out is that Day Traders would not be taxed this 2 % !
    I dont understand how Brokers could find out AT THE TIME OF PURCHASE when clients Will Sell : same day or not ?
    This would have made some sense, if the tax was on sales not on purchases, because in a sale we know when the purchase was made, not the other way.
    But….but…but more than ….I DONT KNOW ! Strange…for sure !
    On the other hand, as I stated, many more articles stated that it is easy to avoid the tax, by simply trading them ELSEWHERE !
    Outside of this, I dont understand why this tax is only for foreigners and not for everyone, locals included !
    but….but….but…..that is typically Brazilian style !
    Finally, believe it or not, rumor is that other countries, notably Colombia, could do something similar.
    Time will tell !

    In UK, they have a 0,45 % tax for yeaaaaars.
    the Financial Wizards have thus found a trick.
    They created what is called a CFD (dont bother what it means : CASH FOR DIFFERENCE), which is somewhat similar (BUT DIFFERENT) to a Stock Future Contract ! Wizards being wise….in their marketing…..have then applied these CFD to many many many many Europeans Shares, not only UK.
    And with a Huuuuuggggge Successssss.
    My view ? I have never traded them and never ever will ! the Market Makersssss simply hit you, by making money even more.-..FOR THEMSELVES AGAINST THE MANY MANY MANY ….IDIOTS !
    Are Financial Wizards not supposed to make truckloads of money ? Of course yesss !
    They just invent a “new type” of investments, and then market them…VERY WISELY….hiding the tricksssss !

    On Chavez :
    You certainly know how I dont like him since I was the one giving his nickname….THE CLOWN !
    This said, what surprises me the most is how brazilians do analyze Chavez the Clown rethorics so differently than Robbing Hook rethorics.
    For me…they are nearly the same ! Not exactly because the Clown rethorics are even harsher than Robbing Hook, but not by that much, in my view !

  • dnbaiacu

    This Imposter writing about ch.c. and his rent boys then writing stupid things as if they were passages from the Bible, he’s not just a kid playing around but a very nasty, disrespectful person to all Christians who come here and read him taking the name of the Lord for his bullshit…

    This person is not me…

  • João da Silva

    [quote]Some people never learn. [/quote]

    Yeah, they don’t know what [i][b]ÀŽ³ [/b][/i] code is and would never ever have the ability to learn it. BTW, it was a very smart move on your part to use it. 😉

  • dnbaiacu

    Try again LOLOL
    Some people never learn.

    [quote]À‚ But wicked men and impostors will advance from bad to worse, misleading and being misled.
    [/quote]2 Timothy 3:13

  • dnbaiacu

    Whoever is posting comments under my name here is someone with no identity and clearly with nothing better to do 😀

    This subject, about ch.c. and his gay lovers, is not of my interest and any comment written with my name is not done by me…

  • Bambu

    To this Ch.c or whatever he wants to call himself
    Thanks for the lesson on Swiss men… I’m NOT discriminating you if that’s what you think, if you like german swiss, dislike french swiss men and brazilian men… Whatever floats your boat man…

    However, I’m straight and I would never date a guy.. nothing against, just not my taste, especially a grandfather like yourself.. men or women wouldn’t date you grandpa, its just time for you to calm down with your pension as viagra won’t work anymore..

  • dnbaiacu

    the Real Dnbaiacu
    Any of the above comments were not by me. 🙂 🙂
    We got some really repressed and depressed people on here. Get a life! Don’t you have friends to play with? Bring some substance.

    [quote]Even if you should pound the foolish one fine with a pestle in a mortar, in among cracked grain, his foolishness will not depart from him.
    [/quote] Proverbs 27:22

    Every1 knows who this is. 😉

  • ch.c.

    So, stop writing stupid things just like these idiots here !

    Swiss men are the best, especially German Swiss men: hot and sexy! French Swiss men are ugly and stupid.. French Swiss (in general) are just French wannabe without proper identity !

  • Shelly1

    [quote]And my smaaaaacks to Shelly ChÀƒ©rie ![/quote]

    My dear, don’t get me involved with this subject…. I’m over it a long time ago when I left Brazil, Brazilian men, etc…

    I’m happily married to a real English gentleman and with three wonderful kids! I suggest you to go to England for love, as Englishmen are real nice and polite…

  • ch.c.

    You are such an idiot !


    You can try your charms on me as much as you want.. I’m done with Brazilian men… no more, never again !

  • Bambu

    All girls, foreign or not, all agree Brazilian men are the most handsome and the nicest in the world 😉

    About non-straight relationships, it seems brazilans don’t rank the top of the list according to this guy here,but that’s beyond the scope of my research so i dont care 😉

  • dnbaiacu

    You stupid bird… Ch.c. is not talking about Brazilian men are no good for relationships.. he’s suggesting that Brazilian gay men are no good for gay relationships…

    Brazilian men still remain the best for girls 😉

    – but that’s not the point here

  • Shelly1

    I know very well your feeling… Brazilian men are not, indeed, a very good choice for relationships

  • dnbaiacu

    Ch.c. is an old boy, not a girl 😉 We don’t discriminate people’s sexual orientation, that is irrelevant here, he’s just trying to make a point based on his previous relationship…

  • João da Silva

    [quote]In addition to that
    written by ch.c., October 22, 2009
    Brazil will never ever ever ever be 1st world !

    Thinking otherwise is an utopia and heresy !

    Like I said in a previous comment,

    Brazil is
    1) one country on Earth with the Highest Social & Wealth INEQUALITY
    2) one of the World Highest crime rate.
    3) Brazilians, especially brazilian men, cannot be trusted not even for relationships… [/quote]

    A futile attempt to impersonate the “Real ch.c”. Try again. 😀

  • Bambu

    [quote]Brazilians, especially brazilian men, cannot be trusted not even for relationships… [/quote]

    What do you mean by that? Brazilian men cannot be trusted for relationships?

    Although, I agree with you with regards to the other things you write about Brazil, what you’re saying is purely childish… come on girl, Im sure you can find another man to fulfil your happy-forever dream !

  • ch.c.

    In addition to that
    Brazil will never ever ever ever be 1st world !

    Thinking otherwise is an utopia and heresy !

    Like I said in a previous comment,

    Brazil is
    1) one country on Earth with the Highest Social & Wealth INEQUALITY
    2) one of the World Highest crime rate.
    3) Brazilians, especially brazilian men, cannot be trusted not even for relationships…

  • S

    Good Article Inco sued million over nickel mining royalties/2115183/story.html

  • João da Silva

    Any comment, Komrade? Some thing strange going on.

    Never ever forget my motto:

    In these troubled times, old friends have to keep each other informed. 😉

    After watching the news on the TV tonight, I am beginning to understand why Augustus is beginning to get pissed off more and more with Chavez e Cia.

    Remember that 20 year cycle?

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