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Foreign Investors Flee Brazil’s Stock Market

Brazil's stocks partly recovered (0.16%) on Friday, July 4, after their worst week in nearly a year with the São Paulo Bovespa index, the Ibovespa, falling 7.7% – below the 60.000 benchmark – in line with global markets and concerns about oil prices and rising inflation.

Bovespa officials also revealed on Friday that the São Paulo stock exchange closed June with a deficit equivalent to US$ 4.06 billion, which means that contrary to what happened in April when there was virtually a flood of foreign capital, the inflow this last month was negative.

In April, the Bovespa operations had a surplus of US$ 3.7 billion but beginning in May foreign capital began leaving and closed the month with a mere US$ 300 million plus.

In June, the São Paulo stock exchange lost 10.43%, with foreign purchase of Brazilian stocks totaling US$ 28.3 billion, but sales jumped to US$ 32.95 billion and the resulting loss of money volume.

However in spite of a very adverse June, the Bovespa managed to close the first semester with a surplus of foreign investment of US$ 3.3 billion, mostly because of the several public offerings with foreigners wanting to change currency into stock assets.

Mercopress

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