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In August, the total number of trades in BM&FBOVESPA's securities and fixed income markets reached 4.5 million, with a financial value of BRL 101.04 billion. The company's derivatives markets (both financial and agricultural) ended August with a total trading volume of 28.77 million contracts, and a notional financial value of USD 1.18 trillion.
SECURITIES AND FIXED INCOME TRANSACTIONS
Foreign Investment
As of August 29 the net flow of foreign investment into the Brazilian stock market in 2008, amounted to a positive BRL 3,238,055,565.50, which is the net balance between the BRL 19,773,442,885.50 in shares purchased by foreign investors and the BRL 16,535,387,320.00 in shares sold by foreign investors at BM&FBOVESPA.
In August, the financial value traded by foreign investors in the stock market was a negative BRL 2,251,930,953.00, which is the net balance between stock sales of BRL 36,157,476,177.00 and stock purchases of BRL 33,905,545,224.00.
The foreign investor participation in stock offerings, including IPOs, represented 48.1% of the total BRL 41,088,182,386.20 considering only the transactions whose closure notices were published up to September 2, 2008.
Trading Value and Number of Trades
Trading value in securities and fixed income markets totaled BRL 101.04 billion in August, down from BRL 124.17 billion in July. The average daily financial value stood at BRL 4.81 billion compared to BRL 5.64 billion in July. In August the total number of trades and the daily average of trades stood at 4.5 million, and 214,197 respectively, compared to 5.04 million and 228,974 in July.
The stocks with the highest trading values were Petrobras PN, with BRL 12.90 billion; Vale R Doce PNA, with BRL 11.33 billion; Sid Nacional ON, with BRL 2.98 billion; Usiminas PNA, with BRL 2.69 billion; and Bradesco PN, with BRL 2.65 billion.
Investors Groups
In August nonresident investors continued to rank first in terms of traded value on securities market, accounting for 34.74% of the total compared to 35.24% in July. Institutional investors accounted for 28.65% compared to 28.83% in July; individuals accounted for 24.28%, compared to 24.47% in July; financial institutions accounted for 9.80% compared to 9.10% in July; companies accounted for 2.48% compared to 2.27% in July; and the participation of investors classified under the group “others” accounted for 0.05% compared to 0.09% in July.
Market Value
The combined market value of the 397 companies listed on BM&FBOVESPA was BRL 2 trillion at the end of August down from BRL 2.14 trillion in July.
Corporate Governance
As of August 29, 2008, the 164 companies that are included in the Special Corporate Governance levels represented 60.66% of the market value, 70.24% of the traded value and 76.01% of the number of trades in the BM&FBOVESPA securities cash market.
Markets
Cash market accounted for 93.1% of the trading value in August, followed by the forward market with 3.5%, and the options market with 3.4 %, compared to 93.4%, 3.9% and 2.7%, in July 2008, respectively. The traded value for the after-market was BRL 598,299,899.64 in August, with a total of 61,837 trades, down from the corresponding totals in July which were BRL 731,003,236.02 and 74,270, respectively.
Ibovespa
The Ibovespa ended August down 6.4% at 55,680 points. The best performing stocks were Embraer ON (+15.73%); Tim Part S/A ON (+11.21%); Ambev PN (+7.87%); Brasil T Par ON (+4.78%); and Telemar PN (+4.06%). During the same period, the worst performing stocks were JBS PN (-21.07%); Rossi Resid ON (-20.32%); Aracruz PNB (-17.71%); Cosan ON (-15.65%); and Usiminas PNA (-15.41%).
Other Indices
In addition to the Ibovespa Index, all of the other indices ended the month of August at lower levels: IBrX-50 (-5.9% at 8,143 points); IBrX (-5.8% at 18,231 points); ISE (-6.0% at 1,749 points); ITEL (-3.6% at 1,164 points); IEE (-8.7% at 17,483 points); INDX (-6.6% at 9,100 points); IVBX-2 (-6.3% at 4,842 points) IGC (-7.7% at 5,514 points); and ITAG (-7.9% at 7,073 points).
Individual Investors
At the end of August, the Brazilian Clearing and Depository Corporation (CBLC) had a total of 529,089 individual investor accounts, up from 528,769 in the month of July.
Investment Clubs
In August, 58 investment clubs were created, raising the number of new registrations in 2008 to 675. The Exchange ended August with a grand total of 2,680 investment clubs. The net worth of these clubs totaled BRL 15.88 billion and the number of investors stood at 152,765, according to the last available data (July 2008).
Securities Lending
The Securities Lending Program – BTC registered a turnover of BRL 20.47 billion in this month, down from BRL 32.52 billion in July. During August 48,517 transactions were registered, representing 245 underlying securities, compared to 56,759 transactions involving 255 securities in July.
Fixed Income
In August, three Corporate Bonds and six Receivable Investment Funds (FIDC) began trading on the Exchange's fixed income markets. The traded value of the secondary market totaled BRL 43,392,448.61, down from BRL 118,865,442.53 in July, adding together the BOVESPA Fix and SOMA Fix trading systems. The total trading value for August consisted of BRL 16,034,490.89 from FIDCs, BRL 2,562,362.95 from corporate bonds and BRL 24,795,594.77 from CRIs.
FINANCIAL DERIVATIVES TRANSACTIONS
The BM&FBOVESPA derivatives markets (both financial and agricultural) traded 28.77 million contracts in August down from 35.18 million in July.
Among the markets with the greatest liquidity, the U.S. Dollar futures was the overall leader in August, with 7.65 million contracts traded, an increase of 16.93% over the 6.54 million contracts traded during the previous month. The volume of contracts traded on the Ibovespa futures market also increased, from 1.66 million in July to 1.72 million in August.
The ID futures market traded 9.57 million contracts in August down from 16.10 million in July.
Agricultural Derivatives Transactions
The agricultural futures market (including futures, options and ex-pit transactions) traded 333,790 contracts in August, with a financial volume of USD 5.23 billion, down from 347,200 contracts and USD 5.54 billion in July.
Notwithstanding the Arabica coffee futures market was the highlight in August, with a total of 101,400 contracts traded, which was an increase of 62% over the 62,600 contracts traded in July. While the sugar futures market also stood out with a total of 704 contracts traded in August up substantially from the 90 contracts traded in July.
The trading volumes registered in the other agricultural futures markets fell in comparison to July. The live cattle market traded 173,540 contracts in August down from 207,540 in July; the corn market traded 42,550 contracts down from 54,760 in July; the soy market traded 14,950 contracts down from 21,270 in July; and the Ethanol market traded 646 contracts down from 941 in July.
Open interest on the BM&FBOVESPA markets ended the month of August with 103,760 contracts down from 131,980 contracts in July.
Mini Contracts
The number of mini contracts traded in August totaled 796,830. The number of U.S. Dollar mini contracts doubled in August, reaching a total of 8,430 compared to 4,020 in July, while the number of Ibovespa mini contracts traded in August stood at 788,390, down from 900,730 contracts in July.
Investor´s Participation
Financial institutions ranked first in terms of the financial volume traded at the Exchange in August, accounting for 49.59% of the total financial volume; institutional investors accounted for 20.90%; nonresident investors accounted for 17.58%; individual investors accounted for 8.43% and nonfinancial institutions accounted for 3.49%.
