MercoPress. South Atlantic News Agency

Sao Paulo stock market lost foreign investors in June

Brazilian stocks partly recovered (0.16%) on Friday after their worst week in nearly a year with the Sao Paulo Bovespa index falling 7.7%, -below the 60.000 benchmark-, in line with global markets and concerns about oil and inflation.

Bovespa officials also revealed on Friday that the Sao Paulo stock exchange closed June with a deficit equivalent to 4.06 billion US dollars, which means that contrary to what happened in April when there was virtually a flood of foreign capital, the inflow this last month was negative. In April the Bovespa operations had a surplus of 3.7 billion US dollars but beginning May foreign capital began leaving and closed the month with a mere 300 million US dollars plus. In June the Sao Paulo stock exchange lost 10.43%, with foreign purchase of Brazilian stocks totaling 28.3 billion US dollars but sales jumped to 32.95 billion and the resulting loss of money volume. However in spite of a very adverse June, Bovespa managed to close the half year with a surplus of foreign investment of 3.3 billion US dollars, mostly because of the several public offerings with foreigners wanting to change currency into stock assets.