Brokerage Coinvalores said in a note to clients that market participants have been closely monitoring actions taken by central banks around the world to contain the risks oof a global economic slowdown "Uncertainties surrounding the global economy are on the rise, so we must get used to a period of volatility in global financial markets and here it could not be any different," analysts at Mirae Asset added.
So far this month, foreign investors have reduced their stock holdings in Brazil by 9.6 billion reais, the stock exchange said. These figures would appear to give credence to the view consistently held by market participants this year that foreign investors are far less bullish on Brazil than domestic investors.
The latest available international portfolio flows data from the central bank show that in the first six months of the year investors pulled more than a net $2 billion from Brazilian stocks, while investing more than a net $6 billion into Brazilian fixed-income assets.
Despite the overseas outflow from equities, the benchmark Bovespa index is up 13% this year, as the lowest official interest rates on record encourage local and institutional investors to diversify out of bonds.