Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

BOVESPA's Monthly Bulletin October 2006

Date 08/11/2006

BOVESPA’s year-to-date foreign investment balance presented a deficit of BRL 797,489,588.00 or USD 337,733,235.43 as of October 31. This figure includes the net inflow of BRL 1,425,940,896.00 or USD 665,394,725.15, resulting from purchases of BRL 18,280,814,826.00 or USD 8,530,478,220.25 and sales of BRL 16,854,873,930.00 or USD 7,865,083,495.10, as shows the table below:

2006 BOVESPA´s Year-to-Date Foreign Investment Balance - in USD

Month Buy* Sell* Net* Year-to-Date
January 7,923,006,926.90 6,743,428,177.80 1,179,578,749.10 1,179,578,749.10
February 8,018,278,779.68 8,281,271,599.63 (262,992,819.95) 916,585,929.15
March 8,685,016,187.17 8,692,297,398.73 (7,281,211.56) 909,304,717.59
April 7,995,871,792.07 7,426,967,101.28 568,904,690.79 1,478,209,408.38
May 11,113,587,890.46 11,772,176,785.48 (658,588,895.02) 819,620,513.36
June 7,639,738,727.07 8,684,009,988.45 (1,044,271,261.38) (224,650,748.02)
July 5,350,161,632.66 5,651,110,870.32 (300,949,237.66) (525,599,985.68)
August 7,652,089,971.48 8,213,482,543.01 (561,392,571.54) (1,086,992,557.22)
September 6,612,610,404.75 6,528,745,808.11 83,864,596.63 (1,003,127,960.58)
October 8,530,478,220.25 7,865,083,495.10 665,394,725.15 (337,733,235.43)
* This information is calculated using the monthly closing exchange rate of the Central Bank of Brazil.


Novo Mercado and Levels of Corporate Governance
The IGC (Corporate Governance Index) closed October up 7.8%. It is composed of 89 companies: 39 of Novo Mercado and 50 of Level 1 and 2. These companies now represent 58% of BOVESPA’s total market capitalization, 60% of the total trading value of BOVESPA. Last month, four new companies joined Novo Mercado and two companies adhered to Level 2.

IPOs – Capital Raised

Date Company Ticker Amount - USD Foreign Investors´ Participation
February/2006 Copasa mypk3 370,496,231 74%
Vivax vvax11 241,027,510 69%
Gafisa gfsa3 437,547,791 72%
March/2006 Company cpny3 133,245,008 64%
Totvs tots3 212,962,963 69%
Equatorial eqtl3 251,288,372 77%
April/2006 ABNote abnb3 227,694,213 80%
May/2006 CSU card3 164,721,052 83%
BrasilAgro agro3 281,739,130 82%
Lupatech lupa3 207,678,910 78%
June/2006 Datasul dsul3 140,271,021 80%
July/2006 MMX mmxm3 469,524,936 76%
Abyara abya3 74,775,104 83%
September/2006 Medial medi3 295,446,782 76%
October/2006 Klabin Segall medi3 335,876,619 not available at this date
Santos Brasil kssa3 224,430,239 not available at this date
M. Dias Branco stbr11 393,767,216 not available at this date
Brascan mdia3 169,464,361 not available at this date
Profarma bisa3 493,665,560 not available at this date
Terna pfrm3 163,249,544 not available at this date
* This information is calculated using the Central Bank of Brasil exchange rate on the first day of Trading.





Investors Groups
The monthly trading turnover was pushed once again by International Investors, who led transactions with a 33.33% stake against 34.43% in September. Institutional Investors ranked second with 29.67% compared to 28.75% registered in the previous month, followed by Individuals with 24.05% (against 25.23%); Financial Institutions, 10.94% (against 9.42%); Companies, 1.97%, (against 2.11%); and Other Groups, 0.04% (against a 0.07% stake).


Home Broker Stake
In October, the participation of Home Broker system in BOVESPA’s total result reached 7.18% and 21.50% in trade value and volume, respectively, against 6.57% and 20.33% in September. The system reached daily averages of 38,579 transactions worth BRL 317 million (against 33,454 trades worth BRL 248 million in the previous month). Currently provided by 53 brokerage houses, Home Broker registered 65,797logins in the period. The average value of trade stood at BRL 8,200.


Trading Value
In October, BOVESPA turned over BRL 52.9 billion or USD 24.6 billion compared to BRL 41.8 billion in the previous month. The daily average stood at 93,778 worth BRL 2.5 billion or USD 1.2 billion, compared to 85,376 trades worth BRL 2.1 billion registered in September. The most active stocks in terms of trading value were: Petrobras PN (BRL 6.57 billion); Vale R Doce PNA (BRL 3.88 billion); Bradesco PN (BRL 1.61 billion); Usiminas PNA (BRL 1.55 billion); and Itaubanco PN (BRL 1.34 billion).





Markets
Cash Market was responsible for 92% of the total value registered in October, followed by Options Market (4.7%) and Forward Market (3.3%). After Market amounted to 15,952 trades worth BRL 140,917,194.96 (against 13,424 trades worth BRL 103,079,259.51 registered in the previous month).


Ibovespa
The benchmark Ibovespa stock index closed October up 7.7% at 39,262 points, thus registering a 17.3% rise so far this year. The best performing stocks in the period were Tim Part S/A PN (+20%); Vale do Rio Doce ON (+16.8%); Light S/A ON (+16.4%); Vale do Rio Doce PNA (+15.9%); and Bradespar PN (+15.7%), while the worst performing stocks were Telemig Part PN (-9%); Eletrobrás ON (-6%); TAM S/A PN (-5.3%); Telemar ON (-4.7%); and Eletrobrás PNB (-4.6%).




Other Indices
The following indices closed the month up: IGC (+7.8% at 4,511 points), IBrX-50 (+7.4% at 5,647 points), IBrX-100 (+7.1% at 12,688 points), ITEL (+6.7% at 934 points); ITAG (+6.6% at 6,141 points), IVBX-2 (+6.3% at 4,193 points); ISE (+6.7% at 1,264 points); INDX (+5.2% at 6,371 points) and IEE (+3.9% at 12,442 points).


Market Capitalization
In October, the market capitalization of BOVESPA-listed companies amounted at BRL 1.35 trillion or USD 631 billion.





Fixed Income
In October, 4 FIDCs (Receivable Investment Funds), 2 CRIs (Real Estate Receivable Certificate) and 5 Corporate Bonds have started to be traded on BOVESPA Fix and SOMA Fix Markets. The trading value of BOVESPA fixed income markets turned over BRL 126,749,991.00 or USD 59,000,658.58 (against BRL 230,592,819.76 totaled in previous month). Out of this total, BRL 51,172,153.82 referred to FIDCs, BRL 66,638,369.86 to CRIs (Real Estate Receivable Certificates) and BRL 8,939,467.32 to Corporate Bonds.




BOVESPA Popularization Campaign

Since September/2002, the popularization campaign BOVESPA vai até Você (BOVESPA where you are) has stimulated the creation of 1,288 investment clubs. The campaign resulted in 29 new investment clubs in October this year, thus raising the number of new registrations in 2006 to 344. BOVESPA had listed a total of 1,580 clubs as of September 30. According to last data available (September), investment clubs totaled BRL 8 billion in net asset and 128,000 investors.