In August, the B3 recorded a strong outflow of international capital, with foreign investors recording a net turnover of R$ 10.4 billion, XP Investimentos highlights in a report published on Friday on the Brazilian stock exchange (15).
Overall, foreign investors recorded a total of R$298.6 billion in purchases, but R$309 billion in sales, for a negative total of R$10.4 billion.
According to the XP team, the capital outflow can be attributed to rising interest rates on 10-year U.S. Treasury bonds, which reached their highest level since 2007, and profit-taking.
However, second Data B3, the main investors in the Brazilian stock market continue to be foreign investors, approximately 53.3%. The dispersion is as follows:
- 1) foreign investors (53.3%)
- 2) institutional investors (28%)
- 3) individuals (14.3%)
Together they represent a market share of 95.6%.
In this scenario, XP remains optimistic about the Brazilian stock market, due to the start of the interest rate reduction cycle and the still discounted valuation on the stock market. “Moreover, if the trends observed in early September data continue, we can expect a new positive flow by the end of the month,” analysts say.
Brazilian stocks: Local investors were buyers, says XP
According to XP, institutional investors were net buyers, while retail (individual) investors saw the strongest entry of the year so far.
In total, institutional investors recorded a positive flow of R$5.4 billion. Individual investors injected R$4.6 billion.
Outflows from equity funds intensified in August, analysts show
In relation to equity fund raising, withdrawals reached R$1.7 billion in August. In annual terms, they amount to R$39.7 billion.
On the other hand, multi-market funds had a positive balance, with an inflow of R$9.1 billion, but, in cumulative terms for the year, these funds still accumulate outflows of R$47.4 billion.
“In addition, fixed income funds had another strong month, recording a net inflow of R$22.4 billion. Accumulated net outflows for the year decreased substantially to R$38.7 billion,” they describe XP analysts.
B3 sees a 14.2% annual decline in stock trading volume
B3 (B3SA3) released operating data for August 2023, reporting average daily share volume of R$25.424 billion for the month.
Compared to the same period last year, i.e. August 2022, the new volume of stock trading released by B3 shows an annual decline of 14.2%.
In the same comparison period, the average revenue per contract (RPC) of Actions showed an increase of 1.1%, from R$0.968 to R$0.978. The speed of market turnover decreased by 2 percentage points per year, from 159.0% to 138.9%.
Source: Terra
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