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BM&FBOVESPA’s derivatives (financial and agricultural) markets ended the month of July with a total trading volume of 36.6 million contracts, a 3.15% growth over the volume recorded in the previous month (35.5 million contracts). The notional financial volume amounted to USD1.6 trillion against USD1.5 trillion in June 2008. Equity transactions totaled BRL124.17 billion against BRL132.54 billion in the previous month, with a daily average of BRL5.64 billion (BRL6.31 billion in June). The total number of trades in July reached 5.04 million, against 4.75 million in June, with an average daily trading volume of 228,974 and 226,410, respectively.
Equities and fixed income transactions
Foreign investment
The flow of foreign investment into the Brazilian stock market by July 31, 2008, amounted to a negative amount of BRL2,051,166,969.70, which is the net balance between the IPO purchases made by foreign investors in the amount of BRL12,232,289,397.30 and the outflow of direct investments from the São Paulo Stock Exchange (BVSP) in the amount of BRL14.283.456.367,00. In July, the financial value traded by foreign investors in the Brazilian stock market amounted to a negative amount of BRL7,626,624,839.00, which is the net balance between stock sales in the amount of BRL47,460,999,500.00 and stock purchases in the amount of BRL39,834,374,661.00.
In 2008, the participation of nonresident investors in securities offerings, including IPOs, represented 56.5% of the total amount of BRL21,653,989,257.50 of the transactions related to the publication of offering closure dates by August 4, 2008.
Investors’ participation
Nonresident investors continued to rank first in terms of the financial value traded at the Exchange in July, accounting for 35.24% of the total value against 37.21% in June. Institutional investors accounted for 28.83% of the value, against 26.29% in the previous month; individuals accounted for 24.47% against 24.42%; financial institutions accounted for 9.10% against 8.83%; and companies accounted for 2.27% against 3.16%. In addition, the participation of investors classified under the group “others” remained stable at 0.09%.
Market value
The market value of the 398 companies listed on BM&FBOVESPA was BRL 2.14 trillion at the end of July 2008 against BRL2.4 trillion in June..
Special governance levels
As of July 31, 2008, , the 165 listed companies that are included in the special governance levels represented 61.62% of the total market value, 72.3% of the financial value and 74.56% of the number of trades in the Exchange’s cash market.
Markets
The cash market accounted for 93.4% of the financial value in July, followed by the options market, with 2.7%, and by the forward market, with 3.9%, against 93.2%, 2.7% and 4.1% in June 2008, respectively. The after-hours market financial value reached BRL731,003,236.02 in July, with a total of 74,270 trades, against the value of BRL683,510,393.22 and 71,305 trades in the previous month.
Ibovespa
The Ibovespa index ended July down 8.4% at 59,505 points. The stocks with the highest yields were Natura ON (+14.13%); Lojas Americanas PN (+13.33%); Embraer ON (+12%); Cosan ON (+11.16%); and Light S.A. ON (+8.7%). In the same period, the stocks with the lowest yield were Petrobras PN (–22.31%); Petrobras ON (–22.16%); Bradespar PN (–18.55%); Vale R. Doce ON (–17.53%); and Duratex PN (–16.29%).
Other indices
Besides the Ibovespa index, the following indices ended the month at low levels in July: IBrX-50 (–1.5% to 8,662 points); IBrX-100 (–10.7% to 19,366 points); ISE (–8.2% to 1,863 points); ITEL (–3.5% to 1,209 points); INDX (–7.9% to 9,750 points); IVBX-2 (–2.8% to 5,170 points); IGC (–6.0% to 5,978 points); and ITAG (–3.6% to 7,680 points). The IEE index maintained the same level it reached in June, at 19,167 points.
Home Broker
In July, the Home Broker recorded the following figures: Total financial value of BRL25.83 billion against BRL28.36 billion in June; average daily financial value of BRL1.17 billion against BRL1.35 billion in June; average value per trade of BRL10,009.70 against BRL10,396.12 in June; number of trades of 2.58 billion with a daily average of 117,289 against 2.73 billion and 29,889 trades in June, respectively. The share of the Home Broker system in the Exchange’s financial value reached 11% in July against 11.62% in the previous month, and 25.99% in the number of trades against 29.26% in June. The number of investors reached 190,380 in July against 231,316 in June. The number of brokerage firms offering Homer Broker services increased from 58 to 60.
Individual investors
At the end of July, , the Brazilian Clearing and Depository Corporation (CBLC) had 528,769 individual investor accounts in comparison with 516,757 in the previous month.
Investment clubs
In July, 79 investment clubs were created, raising the number of new registrations to 617 in 2008. The Exchange ended July with a total of 2,650 investment clubs. The net worth of these clubs totaled BRL17.6 billion and the number of quotaholders reached 153,434, according to the last available data (June 2008).
Securities loans
At CBLC’s Securities Bank (BTC), the financial value of securities lending transactions reached BRL32.52 billion in July against BRL37.66 billion in June. During July, 56,759 transactions were carried out against 55,842 in the previous month, involving 255 securities in each month.
Fixed income
In July, three debentures
and one Investment Fund on Credit Rights (FIDC) were traded on the Exchange’s fixed income markets. The financial value of the secondary market totaled BRL118,865,442.53 over BRL13,172,407.31 in June, including the Bovespa Fix and Soma Fix trading systems. Regarding the July financial value, , BRL33,339,577.73 refer to FIDC and BRL85,525,864.80 to debentures.
Financial derivatives transactions
The interest rate market (including futures, options and structured transactions) was the highlight in July, with 22.7 million contracts traded, exceeding by 8.23% the volume recorded in the previous month, which amounted to 20.9 million. The markets for foreign exchange and equity indices (including futures and options) fell in comparison to the previous month. In July 2008, 10.6 million foreign exchange contracts were traded against 10.9 million in June. The volume of contracts traded on the equity index market fell from 2.13 million in June to 1.8 million in July. The volume traded on the WebTrading, the Exchange’s electronic trading system for mini contracts, amounted to 904,700 contracts, a 13% increase over the previous month, when it amounted to 800,400 contracts. Open interest was 19.8 million contracts in July against 22.6 million in June.
Agricultural derivatives transactions
The agricultural futures and options markets traded 347,200 contracts in July. For the third consecutive month, the Exchange-traded agricultural derivatives traded on the BM&FBOVESPA exceeded 300,000 contracts. Nevertheless, this volume represented an 8.5% reduction over the previous month, when 379,500 contracts were traded,. At the end of July, the average daily trading volume was 15,700 contracts, a 12.7% fall in comparison with the previous month, when it reached 18,000 contracts. The financial volume registered in the agricultural market totaled USD5,54 billion, a 10.1% decrease over the previous month (USD6.16 billion). In July, open interest for futures and options contracts reached 158,900 contracts. At the end of July, the agricultural options market reached the mark of 8,400 contracts traded, an 8.6% increase over the 7,800 contracts traded in the previous month. The trading volume of live cattle and soybean options contracts also exceeded the June volume: 5,800 contracts against 378 contracts, respectively. The trading volume of live cattle options contracts hit a new historical record in July. The financial volume nearly increased fivefold when compared to June, reaching USD16.9 million, a 262.7% increase against USD4.6 million in the previous month. In addition, open positions on the options markets was 26,900 contracts in July, an 18.5% increase over June.
