In October, the total number of trades in BM&FBOVESPA’s equities and fixed income markets reached 7.76 million, with a financial volume of BRL122.54 billion, compared to 6.46 million trades and a financial volume of BRL120.96 billion in September. The number of individual accounts in the stock markets was the highlight in October, reaching a total of 542,142 accounts compared to 527,692 in the previous month, even exceeding the 529,089 accounts in August.
The Company’s derivatives markets (both financial and agricultural) ended October with a total trading volume of 33.44 million contracts, and a notional financial volume of BRL2.67 trillion, compared to 35.39 million trades and BRL2.55 trillion in September. The highlights in the derivatives markets were the ID and Ibovespa futures markets. The volume of contracts traded on the ID and Ibovespa futures markets in October increased by 4.3% and 18.3% respectively in comparison with the previous month.
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1. Stock Markets
2. Derivatives Markets
3. Floor-Traded Spot U.S. Dollar Market and Gold Spot Market
4. Investor Participation
5. Individuals
6. Fixed Income Markets
1. Stock Markets
Financial volume and number of trades
Financial volume in the stock markets totaled BRL122.54 billion in October, up from BRL120.97 billion in September. The average daily financial volume stood at BRL5.33 billion, compared to BRL5.33 billion in September. In October the total number of trades and the daily average of trades stood at record 7.76 million and a record 337,448, respectively, compared to 6.46 million and 293,628 in September.
The stocks with the highest financial volumes were Petrobras PN, with BRL22.49 billion; Vale R Doce PNA, with BRL15.37 billion; Vale R Doce ON, with BRL4.86 billon; Bradesco PN, with BRL4.56 billion; and Petrobras ON, with BRL4.43 billion.
Indices
The Ibovespa ended October down 24.8% at 37,256 points. The best performing stocks were Telesp PN (+7.41%); Eletropaulo PNB (+2.83%); P.Açucar-CBD PN (+1.48%); and Natura ON (+1.08%). During the same period, the poorest performers were Aracruz PNB (-61.96%); Cyrela Realt ON (-45.64%); B2W Varejo ON (-39.49%); Cesp PNB (-39.39%); and Gafisa ON (-36.68%).
In addition to the Ibovespa index, all of the other indices ended the month of October at lower levels: IBrX-50 (-25.8% at 5,522 points); IBrX-100 (-25.1% at 12,381 points); ISE (-24.9% at 1,245 points); ITEL (-15.1% at 923 points); IEE (-12.3% at 14,375 points); INDX (-25.3% at 5,384 points); IVBX-2 (-20.4% at 3,382 points); IGC (-23% at 3,639 points); ITAG (-23.9% at 4,639 points); Small Cap (-26.9% at 487 points); and MidLarge Cap (-24.7% at 559 points).
Market value
The combined market value of the 396 companies listed on BM&FBOVESPA was BRL1.38 trillion at the end of October, compared to BRL1.79 trillion in September.
Special Corporate Governance Levels
As of October 31, 2008, the 163 companies that are included in the Special Corporate Governance levels represented 59.33% of the market value, 66.19% of the financial volume and 73.75% of the number of trades in the BM&FBOVESPA spot market.
Markets
The spot market accounted for 95.5% of the financial volume in October, followed by the options market with 2.9%, and the forward market with 1.6%. The financial volume for the after-hours market was BRL639.6 million in October, with a total of 83,434 trades, down from the corresponding totals in September which were BRL711.7 million and 80,468, respectively.
2. Derivatives Markets
Financial derivatives markets
The U.S. Dollar, Ibovespa and ID futures markets were the highlights in the month of October. The ID futures market ended October with 13.77 million contracts, an increase of 4.3% compared to the 13.2 million contracts traded in September. The U.S. Dollar futures market traded 8.08 million contracts in October, compared to the 9.99 million contracts traded during the previous month. The volume of contracts traded on the Ibovespa futures market increased by 18.3%, from 1.94 million in September to 2.29 million in October. Open interest on the BM&FBOVESPA markets ended the month of October with 18.65 million contracts down from 19.75 million contracts in September.
Agricultural derivatives markets
The agricultural futures market (including futures, options and ex-pit transactions) traded 283,552 contracts in October, compared to 308,863 contracts in September. In October, 17,654 options contracts were traded at BM&FBOVESPA compared to 27,829 in September. The highlight was the options corn market, with a total of 737 contracts traded in October, which was an increase of 259.5% over the 138 contracts traded in September
The live cattle market traded 169,836 in October down from 176,481 in September. The soybean market traded 19,333 contracts in October up from 16,244 contracts in September. The Arabica coffee market traded 67,018 contracts in October down from 80,520 in September; the corn market traded 25,333 contracts down from 34,630 in September; the sugar market traded 136 contracts up from 74 in September.
Open interest on the BM&FBOVESPA markets ended the month of October with 75,299 contracts, consisting of 55,719 futures contracts and 19,580 options contracts
Mini contracts
The number of mini contracts traded in October increased by 2.97%, reaching a total of 1.04 million compared to 1.01 million in September. The U.S. Dollar market traded 15,545 contracts, an increase of 23.41% over the 12,596 contracts traded in September. The Ibovespa market traded 1.03 million contracts, an increase of 2.61% over the 1.00 million contracts traded in September. Open interest on the mini contracts ended October with 9,534 contracts, compared to 16,273 in the previous month.
3. Floor-Traded Spot U.S. Dollar Market and Gold Spot Market
In October, the floor-traded spot U.S. Dollar market traded 4,998 contracts, with a financial volume of BRL12.5 billion, compared to 4,940 trades and BRL14.1 billion in September.
The gold spot market (250 grams) traded 1,947 contracts in October, an increase of 73.53% over the 1,122 contracts traded during the previous month. The financial volume increased from BRL14.41 million to BRL27.27 million.
4. Investor Participation
Stock market
In October nonresident investors continued to rank first in terms of the financial volume traded on the equities market, accounting for 36.86% of the total compared to 36.80% in September. Individuals accounted for 29.70%, compared to 27.45% in September; institutional investors accounted for 24.42% compared to 26.77% in September; financial institutions accounted for 5.95% compared to 6.96% in September; companies accounted for 2.90% compared to 1.97% in September; and the participation of investors classified under the group “others” accounted for 0.18% compared to 0.05% in September.
Foreign participation
As of October 31, the net flow of foreign investment into the Brazilian stock market in 2008, amounted to a negative BRL3,260,088,511.50, which is the net balance between the BRL19,773,442,885.50 in shares purchased by foreign investors and the BRL23,033,531,397.00 in shares sold by foreign investors at BM&FBOVESPA.
In the month of October, the financial volume traded by foreign investors in the stock market was a negative BRL4,685,588,852.00, which is the net balance between stock sales of BRL47,338,421,684.00 and stock purchases of BRL42,652,832,832.00.
The foreign investor participation in stock offerings, including IPOs, represented 48.1% of the total BRL41,088,182,386.20 in transactions related to the publication of offering closure dates ending on November 2, 2008, as can be seen from a table on the BM&FBOVESPA website under the Press and Media section.
Derivatives market
In October, financial investors continued to rank first in terms of the financial volume traded on the derivatives market, accounting for 52.45% of the total compared to 49.39% in September. Nonresident investors accounted for 22.43% compared to 22.12% in September; institutional investors accounted for 16.20% compared to 17.67% in September; individual investors accounted for 5.40% compared to 7.03% in September and nonfinancial investors accounted for 3.53% compared to 3.78% in September.
5. Individuals
Equities – Individual Investors
At the end of October, the Brazilian Clearing and Depository Corporation (CBLC) had a total of 542,142 individual investor accounts, up from 527,692 in the month of September.
Equities – Investment Clubs
In October, 60 investment clubs were created, raising the number of new registrations in 2008 to 741. The Exchange ended October with a grand total of 2,757 investment clubs. The net worth of these clubs totaled BRL11.6 billion and the number of quota holders stood at 150,655, according to the last available data.
Derivatives
At the end of October, the Derivatives Clearinghouse Registration System had a total of 81,308 individual registration IDs.
6. Fixed Income Markets
In October, an Investment Fund on Credit Rights (FIDC) began trading on the Exchange’s fixed income markets. The financial volume of the secondary market totaled BRL65.47 million, compared to BRL114.74 million in September, adding together the Bovespa Fix and Soma Fix trading systems. The total financial volume for September consisted of BRL63.73 million from FIDCs and BRL1.74 million from debentures.