As for the other BOVESPA indexes, the only one to show a downbeat performance was the Telecommunications Sector Index (ITEL), which fell by 1.0%. The Brazil Index (IBrX), the Valor Bovespa Index (IVBX-2), the Special Corporate Governance Stock Index (IGC) and the Electric Power Index (IEE) rose by 5.4%, 7.6%, 6.0 and 9.6%, respectively.
The stock market´s performance in July was once more influenced by the release of positive data on the Brazilian economy, among which the trade balance surplus — that is expected to reach U$ 30 billion in 2004 —; the publication of a survey conducted by the Central Bank — under which the economy is expected to expand by 3.57% in the current year —; and the primary surplus of R$ 46.1 billion in the first half-year, an amount that exceeds the target agreed with the IMF.
In view of such positive domestic scenario, the lows registered by the main American and European exchanges — caused by high oil prices and uncertainties regarding the increase in the US interest rates — could not adversely affect the national market.
The upswing in stock´s quotations becomes particularly significant when it is verified that the trading value increased as well. R$ 23.8 billion was traded in the period corresponding to a daily average of R$ 1,135.1 million and an increase of 7,7% vis-à-vis the previous month. Cash transactions (round-lot), accounting for 83,2% of the total traded, represented a daily average of R$ 944.0 million.
The total number of trades rose from a daily average of 50,250 trades in June to 58,052 in July, pointing out to an increase in market liquidity. This was evidenced by the cash trading volume/market capitalization ratio that has gone up from 0.32 in June to 0.34 in July.
Trading on the options market, accounting for 8,7% of the total value traded in the month, amounted to R$ 2,081.6 million, reflecting a 15.7% increase vis-à-vis the previous month. Options on indices also performed positively throughout the month: 463 trades were carried out involving R$ 82.3 million, reflecting increases of 2.9% and 0.6% respectively in comparison with the month of June.
The forward market also showed a positive performance in the period, accounting for a financial turnover of R$ 898.9 million (reflecting an increase of 33.5% as compared with the previous month). Of the 12,357 contracts traded, 55.5% were for periods of no more than 30 days, 29.6% for periods of between 31 and 60 days and 14.9% for periods longer than 60 days.
The market capitalization of the 360 BOVESPA-listed companies totaled R$ 703.9 billion at the end of July, reflecting a 5.46% increase in comparison with June. Companies comprising the Ibovespa and the IBrX accounted for 70.6% and 81.9% respectively, of the total market capitalization.
Of the total volume traded on BOVESPA, individual investors accounted for 30.1%, institutional investors for 27.0% and foreign investors for 25.7%. With total purchases of R$ 5,963.5 million against sales of R$ 6,268.4 million, the balance of foreign investors´ transactions on BOVESPA represents sales of R$ 304.9 million.
Finally, we inform that on July 26, BOVESPA started trading shares of the PIBB (whose trading code is PIBB11) on the secondary market. The PIBB is the first index fund to be listed in a Brazilian exchange.
The public offering of PIBB´s shares reached 25,000 individual investors and exceeded R$ 300 million. 22,822,366 shares were sold in the total amount of R$600,000,002.14.
The PIBB was created on a partnership basis with the BNDES (the National Bank for Economic and Social Development). The BNDES assures the repurchase of shares from individual investors who have invested, throughout the initial offering, up to R$ 25 thousand on the “direct” and “FITVM” modalities — with put option.
Based on US funds known as ETF (Exchange Traded Funds) the PIBB reflects the IBrX-50 portfolio — that includes the 50 more actively traded shares on the cash market, weighted by the market value of the outstanding shares of companies comprising that index. Therefore, as it follows the profitability of the IBrX-50, the PIBB has the characteristics of a diversified investment. The PIBB also offers the same trading conditions as those of other variable income assets, including day trade and the possibility of being used as margin of other trades on BOVESPA.
