Bovespa accumulated losses reach 21.39 per cent in Aug.
Brazilian equity markets continued their downward ride yesterday. Sao Paulo Stock
Exchange (Bovespa) has already fallen 21.39% in the month. However, yesterday's
plunge cannot be blamed on the DJIA's performance, which closed out the day higher
at 8,552 points. Such positive performance could not be followed by local bourses,
which lacked liquidity and were plentiful of uncertainties as a result of the renewed
slump registered by Brazilian Bradys and Globals. According to Dow Jones
Newswires, the emerging debt market was mostly affected by the decision of Russia's
State Duma lower house of parliament to postpone its emergency session, in which it
would discuss new economic measures considered fundamental to the country's
accord with the IMF. As a result, Russia's Principals fell 9% and Brazil's C-Bond
receded 4.62%.
Market analysts said that Tuesday's perception that local stock exchanges were
regaining their attractiveness, was washed away by yesterday's events. They added
that traders were "hurt and losing hope". "Traders are now eyeing the US T-Bond,
which, although considered a lackluster investment, it is certainly the safest available,"
an analyst said.
The Ibovespa finished down 4.37% at 8,417 points (Ibovespa/US$ finished down by
4.45% at 2,616 points). Trading volume was at US$701.514bn with some 32.097bn
shares having changed hands. The Rio de Janeiro Stock Exchange Index (IBV-RJ)
closed down 3.58% at 30,380 points (IBV/US$ closed down 3.67% at 9,442
points). Among the blue chips, Telebr s PN/US$ ended down 3.67%. Eletrobr s
ended lower by 10.28%. Petrobras PN/US$ ended down 2.86%. Usiminas finished
lower by 9.70%. CSN ended down 14.42%.
Pressured by the latest events in the international front, the forex market registered
new hikes in both spot and dollar futures quotations. The market's negative reaction
surprised traders who were expecting to have another calm day, since they
consensually believed Banco do Brasil, on behalf of the Central Bank, had, on
Tuesday, flooded the market with dollars in order to guarantee enough liquidity as a
means of restraining any eventual rise in quotations. However, traders were not
prepared for another bad day in the emerging debt market and the new C-Bond
plunge. Japan was also to blame for the nervousness invading the market by
contributing with scary oscillations -- touching Y147.42 against the dollar -- before
Japanese authorities had signaled with the possibility of another intervention in the
country's currency. As nothing was confirmed, the yen closed at Y145 against the
dollar.
In the morning, the Central Bank announced it conducted the third inner-band
adjustment of the month of 0.09%, allowing the real to range between R$1.1660
(floor) and R$1.1750 (ceiling). The US commercial dollar Ptax is currently trading at
R$1.1707/R$1.1706.
At the Futures and Commodities Exchange (BM&F), September contracts rose
0.01% to R$1.17340. October contracts finished up 0.03%, quoted at R$1.18350.
The floating dollar was quoted at R$1.1754, up 0.04%, offering a premium of
0.46%. The black market dollar finished up 0.08% at R$1.223, offering a premium
of 4.53%. The US commercial dollar Ptax ended at R$1.1713/R$1.1710 from
R$1.1689/R$1.1681 registered last Tuesday. |
