Foreign Investors Flee Brazil’s Stock Market

    São Paulo, Brazil, stock market, the Bovespa

    São Paulo, Brazil, stock market, the Bovespa 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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    • Show Comments (13)

    • João da Silva

      Interesting stats. There again it is from SP university. So need to bitch about this “SP university”, for which you have affectionate regards but don’t want to acknowledge 😉

    • ch.c.

      The truth of the matter is that every thing is relevant to where you are on the food chain.
      So right !
      Developed countries have exported foods generations before Brazil even started.
      When grains prices were low, those responsible were of course the developed nations.
      When grains prices are high, those responsible are of course the developed nations.

      Stupid question : do people want HIGH or LOW food prices ?????? Even Lula change constantly his mind. When prices are high he wants low prices and when prices are low he wants high prices.
      He is against agriculture subsidizes in developed nations but PRO his own agriculture subsidizes….of course !
      He criticizes the EU with all his rethorics when we ban the Brazilian meat but is quite happy when South Korea banned the U.S. meat. I bet he had an ejac recently when South Koreans striked against their government who allowed again the U.S. meat and had to revert their decision to some extent.

      And also you are right on the truth of the mattter can you explain why Lula is increasing the agriculture subidizes at a time of high food prices ? Somewhat contradictory in view of where Brazil is on the food chain..as the truth of the matter ! Isnt it ?
      The truth of the matter is he simply wants a higher market share regardless of the food prices.

      Welcome back Jay. Long time not heard from you.

      Ohhh and you are dead right on…. statistical reports can be manipulated to say any thing !
      Brazilians excel at these manipulations.
      To show a higher growth rate they have for the last few years based all their stats using a weak foreign currency : the US$ !!!!
      But to my junior school knowledge, something that goes down by let say 20 % must be compensated by 25 % and not 20 % in more sales…to be just breakeven meaning no growth yet !!!! And when something went down 50 % you need a 100 % more sales to be just break even. Amd this is what Bin the Crook and his 400′ liars are preciously not UNDERLINING
      No doubt these stats manipulators will revert to their own currency when the US$ will reverse its course.
      Continued growth….guaranteed….by definition.

      Does ONE reader or commentator in this site, Brazilian or not, even knows the REAL Brazilian agriculture and agribusiness growth rate of the last few years ? Of course NOT. Hidden from the general public so that they see only the manipulated stats…..by order of Bin the Crook and his 4000 liars !

      Facts are : A) they are available B) not as rosy when expressed in the Brazilian currency !
      Here they are, not done by me but by the CEPEA
      Nothing to be as proud as you are…….wether one likes or not !

      Enjoy your readings….preciously hidden by the gang YOU have elected !!!!!!!!!!!!!!!!!!

    • João da Silva

      Ch.c
      [quote]I am more than glad to have sold my long term brazilian bonds. I dont know if the prices I see are correct but looks like they are also trading at over 15 % or many many points below the price I sold them.[/quote]

      I think you did the right thing. But keep the farmland in BA to produce BBC (or any other crops).

      [quote]Joao : the Brazilian interest rates have nothing to do with elections but due to world commodities prices. I just saw that now the 3 months Braziiian rates are at 13,04 %, 6 months at 13,63, 12 months 14,84, 2 years at 15,53 %.
      These rates are not determined by your government or Central Bank but by the FREE MARKET !!!![/quote]

      I am not sure Ch.c. You know as well as I do that in this country, the governmental interference in the “Free Market” is too much and one can lose money by Presidential decree. Read the news in the following link and give me your comments:

      [url]http://www.estadao.com.br/estadaodehoje/20080706/not_imp201220,0.php[/url]

    • João da Silva

      Jon
      [quote]I went to Mackenzie, then dropped out in my first year…. [/quote]

      Because of the stiff competition, eh? 😀

    • JAY GLENN

      Survey results
      Surveys, statistical reports can be manipulated to say any thing. The truth of the mater is that every thing is relevant to where you are on the food chain.

    • ch.c.

      Jon is too bright to have gone to SP university
      or too Scotchbright if you know what it is !!!!!

      To Jon on the happiest countries :
      for your info only doubtful Iceland and Ireland will stay on the top 10 next year because both countries have by now huge problems such as very high inflation for Iceland and real estate collapse for Ireland !
      I just read today than around 90 % of Ireland rela estate is on short term mortgage rate, Spain at 98 % !
      And the European Central bank has just increased their rates. Not by much. But still t mortage rates are renewed at TWICE the rate of 3-4 years ago ! Ireland already annouced they are going to subsidizes their mortgage rates.
      WE HAVE NOT SEEN ANYTHING YET !
      Many european banks (including UBS) have taken huge losses in the U.S. subprimes but now these same banks (but not UBS) will have to swallow the European subprimes mortgages.
      Same in other countries. In Morocco for example they lent 110 % of the real estate prices….so that they effectively lent for the….furnitures !!!!!!! True !

      Joao : the Brazilian interest rates have nothing to do with elections but due to world commodities prices. I just saw that now the 3 months Braziiian rates are at 13,04 %, 6 months at 13,63, 12 months 14,84, 2 years at 15,53 %.
      These rates are not determined by your government or Central Bank but by the FREE MARKET !!!!

      I am more than glad to have sold my long term brazilian bonds. I dont know if the prices I see are correct but looks like they are also trading at over 15 % or many many points below the price I sold them.

      And if the US$ reverse and at the same time there is a reversal in the commodities……Brazilian (and other emerging countries) rates can zoom up a lot and ALSO have their currencies starting a bear market. Some emerging countries currencies have already lost 8-10 % against the US$ despite it is near the low against the Euro and the Brl.

      Joao, dont you remember what I said a while ago : the USA became the best emerging market on earth ?
      I still believe it for the next 3 years or so !

    • jon

      I went to Mackenzie, then dropped out in my first year….

      on a lighter note Ch C, your country did well on the happiness chart:

      Denmark is the most happy and Zimbabwe is the least happy country as determined by the latest survey from the World Values Survey. According to MSNBC, the survey has been conducted since 1981 and asks two questions À¢€œTaking all things together, would you say you are very happy, rather happy, not very happy, not at all happy?À¢€Â And, À¢€œAll things considered, how satisfied are you with your life as a whole these days?À¢€Â The top happiest countries in order are:

      Happiest Countries:

      Denmark
      Puerto Rico
      Colombia
      Northern Ireland
      Iceland
      Switzerland
      Ireland
      the Netherlands
      Canada
      Sweden

    • João da Silva

      Ch.c
      Thanks for the comments.

      [quote]The risk of such a fall is small near-term as the dollar stays weak,” Dennis wrote. “The timing of a major correction in commodity prices is more likely to be into year-end as the U.S. economy and the dollar finally rebound.”
      Dennis also cut his forecast for Mexico’s Bolsa by 6.6 percent to 28,000 from 30,000. The New York-based strategist kept his “overweight” rating for both Mexico and Brazil, though he favors Mexican stocks over Brazilian shares.
      Any “decent” rebound for Brazilian stocks will depend on improving global conditions and clearer evidence of how high local inflation and interest rates will be, Dennis said.
      “We continue to fear an above-consensus rate peak.” [/quote]

      My thoughts were put in writing by Denis. I have a feeling that till our Municipal elections “all will be blau”, then comes the X-mas and New year and everyone spends the first two months on the beaches. Regardless of the outcome of the elections, the bubble bursts during the summer. This is what I told our friend DNB in another thread.

      I notice that lately you have not mentioned about the 20 year cycle of the government confiscating the money. As you may recall, it is less than 2 years away from now!

      As for your scolding of Jon:

      [quote]You can see now by yourself how ignorant, idiot and stupid YOU are.
      You just proved that your SP University degree was included not in an expensive butt in a cheap Brazilian detergent. [/quote]

      Jon is too bright to have gone to SP university 😉

    • ch.c.

      Jon
      You just prove how idiot you are….once more !

      “The top four countries are all European, with Switzerland ranked first and Sweden, Norway and Finland in the next three slots”

      You see junkie I twist nothing but you do permanenty in your comments.
      You can see how YOUR beliefs but not facts are….WRONG !!!!
      Therefore stop believing…but make sure your comments are factual and not only in your imagination or beliefs !

      You are definetly confirming the recent Brazilian ranking in education : 46th out of 50 !
      Ohhhh and just a few years ago, Jornal Hodje (owned by O’Globo) made their own test : out of 34 countries…Brazil was 34th.
      Or said otherwise…LAST ! Or said differently…at the queue of the queue !!!!

    • jon

      Sorry Ch C but I believe Germany is the best in evironment, you twist your stats again

    • ch.c.

      Joao
      here are a few comments :
      ““By far the biggest long-term risk for Latin American equities is a collapse in commodity prices,” Citigroup strategists including Geoffrey Dennis wrote in a note to clients. “Brazil — with over 60 percent of the index being cyclicals — would be badly hit and, under such circumstances would likely fall well below the 60,000 level.”
      The 19 commodities in the Reuters/Jefferies CRB Index jumped 29 percent through June 30, the most since 1973 and more than any second-half gain in at least five decades, data compiled by Bloomberg show. The rally increased concerns that a correction in commodities prices may be due.
      “The risk of such a fall is small near-term as the dollar stays weak,” Dennis wrote. “The timing of a major correction in commodity prices is more likely to be into year-end as the U.S. economy and the dollar finally rebound.”
      Dennis also cut his forecast for Mexico’s Bolsa by 6.6 percent to 28,000 from 30,000. The New York-based strategist kept his “overweight” rating for both Mexico and Brazil, though he favors Mexican stocks over Brazilian shares.
      Any “decent” rebound for Brazilian stocks will depend on improving global conditions and clearer evidence of how high local inflation and interest rates will be, Dennis said.
      “We continue to fear an above-consensus rate peak.”

      And to jon…the junkie on his ignorant comments :
      Believe it or not but Phosphate is not accepted in detergents in my country, contrary to 99,5 % of the world countries !
      Ohhhhh dear idiot, it is certainly not Brazil but Switzerland that is ranked FIRST WORLDWIDE….FOR ENVIRONMENT !!!!!!

      You can see now by yourself how ignorant, idiot and stupid YOU are.
      You just proved that your SP University degree was included not in an expensive butt in a cheap Brazilian detergent.

    • jon

      It’s a mixed bag of economic news lately although I suggest investing in Swiss detergent
      and borax companies……great rates of return 😉 😉

    • João da Silva

      Foreign Investors Flee Brazil’s Stock Market
      Are they all taking their money out to invest in Harare Stock Exchange? 😉

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