São Paulo – Foreigners were the main investors in the São Paulo Stock Exchange (Bovespa) in February, according to figures supplied by the stock market. They participated in 35.5% of investment and their participation grew 1.4 percentage points when compared to the previous month, when they had been responsible for 34.1% of the turnover.
Foreigners also bought more than they sold for the first time in eight months. They bought 26.4 billion reals (US$ 11 billion) and sold 25.8 billion reals (US$ 10.7 billion). That is, the balance of the turnover of foreign investment on the Bovespa was 544 million (US$ 230 million). If, however, the two-month period is taken into account, the result is a deficit of R$ 101.9 million (US$ 42.6 billion).
Apart from foreigners, financial institutions have also expanded participation in the stock market. They answered to 6.8% of the turnover, with growth of 0.5 percentage points over the first month of the year. The participation of natural people dropped 33.5% in January to 32.8% in February. Natural people are in the second position, however, in terms of investment, second only to foreigners.
The third main investors were institutional investors. The group is made of pension funds and foundations, and participated with 22.9% of the turnover in February. The share is 0.9 percentage points lower than in January, according to the Bovespa. Public and private companies reduced their participation from 2.2% in January to 1.9% in February.
The Ibovespa index posted retraction of 2.84% in February. It is the most important index of average performance of shares on the Brazilian market and reflects the behaviour of the main papers negotiated on the Bovespa.
*Translated by Mark Ament