- Individual investors are the leading investors in the equities segment’s financial volume.
- Trading via Home Broker registered records in financial volume participation and in number of trades in the equities market.
- In the derivatives segment, cash settled corn futures contracts sets record in the number of contracts traded.
In January 2010, equity markets (Bovespa segment) reached a total volume of BRL 129.10 billion, in 8,051,640 trades, with daily averages of BRL 6.79 billion and 423,771 trades, respectively. In December, total volume reached BRL 133.25 billion, with 7,103,472 million trades. This month’s BOVESPA segment highlights are: the participation of individual investors in the equities segment’s financial volume at 31.45%, followed by institutional investors (29.40%) and foreign investors (28.03%); and trading via Home Broker, a web-based equities trading system, set the following records: financial volume participation in the equities markets with 21.10% and in the number of trades with 34.70%.
Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 36,217,359 contracts and BRL 2.65 trillion in volume in January. That compares to 31,457,555 contracts and a volume of BRL 1.96 trillion in December. The daily average of contracts in the derivatives markets in January was 1,810,868, compared to 1,572,878 in the previous month. Cash settled corn futures contracts set a new record in January, with 50,886 contracts traded (futures and options), in contrast to 48,440 in the previous month. BM&F segment set Direct Market Access (DMA) trading records via Access Provider, with 2,723,958 contracts traded in 61,019 trades; and via Co-location with 318,881 in 76,882 trades. Order routing via CME Globex – GTS hit a record of 618,746 trades.
BOVESPA Segment (Equities)
Volumes and Trades – Equities, Equities Derivatives and Fixed Income
The Bovespa markets reached a total volume of BRL 129.10 billion in 8,051,640 trades in January, with daily averages of BRL 6.79 billion and 423,771 trades, respectively. In December, total volume reached BRL 133.22 billion in 7,103,472 trades. December daily averages reached BRL 6.66 billion and 351,174 trades.
The most traded stocks in January were: Vale PNA, with BRL 14.40 billion; Petrobrás PN, with BRL 12.61 billion; OGX Petróleo ON, with BRL 6 billion; Itauunibanco PN, with BRL 3.84 billion; and BMFBovespa ON, with BRL 3.14 billion.
Indexes
The Ibovespa ended January down 4.65% at 65,401 points. Best performing stocks were: Eletrobras ON (+10.18%); Eletrobras PNB (+9.39%); Embraer ON (+5.05%); Souza Cruz ON (+4.76%); and Eletropaulo PNB (+4.06%). The worst performing stocks were: Brasil Telec PN (-21.85%); B2W Varejo ON (-20.50%); LLX Log On (-17.51%); Cosan ON (-16.80%); and Lojas Americanas PN (-14.81%).
In addition to the Ibovespa, all stock exchange indexes also ended January lower:
IBrX-50 (-4.47% at 9,135 points); IBrX-100 (-4.22% at 20,758 points); ISE (-3.80% at 1,897 points); ITEL (-7.89% at 1,437 points); IEE (-0.09% at 24,304 points); INDX (-2.75% at 9,744 points); IVBX-2 (-4.66% at 5,517 points); IGC (-2.99% at 6,577 points); ITAG (-4.16% at 8,446 points); Small Cap (-3.67% at 1,129 points); MidLarge Cap (-4.05% at 920 points); Iconsumo (-1.87% at 1,315 points) and Imobiliário (-10.07% at 843 points).
Market Value
Market capitalization of the 385 companies listed on BM&FBOVESPA in January was BRL 2.30 trillion, compared to BRL 2.33 trillion, which represented the same number of companies listed in December.
Special Corporate Governance Levels
The 160 companies that compose BM&FBOVESPA's special corporate governance levels represented, at the end of December, 65.20% of the market capitalization, 73.09% of trading volume, and 73.16% of the trades in the spot market.
Market Participation
The spot market accounted for 93.30% of total trading volume in December, followed by the options market, with 4.4%, and by the forward market, with 2.2%. The after-market traded BRL 1.44 billion with 87,216 trades, compared to BRL 1.54 billion and 87,165 trades in the previous month.
Investor Participation
In January, individual investors were responsible for 31.45% of the total volume, compared to 26.54% in December. Institutional investors came next, with 29.40%, compared to 29.24%; foreign investors had 28.03%, compared to 31.57%; financial institutions, with 8.77%, compared to 10.44%; companies, with 2.31%, compared to 2.17 %; and other types of investors remained at 0.05%.
Foreign Investment
In the month of January, the financial volume traded by foreign investors in the stock market is a negative BRL 2.09 billion, which is the net balance between stock sales of BRL 36.97 billion and stock purchases of BRL 34.87 billion.
Considering foreign investors’ purchases in stock offerings, including IPOs, in the amount of BRL 1.06 billion, related to offers that had their closing announcement ending on February 2, 2010 (offers initiated in December of 2009), foreign investors’ balance in the year is negative by BRL 1.03 billion.
Individual Investors
BM&FBOVESPA ended January with 556,830 individual investor accounts in custody. The stock exchange had 552,364 such accounts in December.
Investment Clubs
BM&FBOVESPA ended January with 2,963 investment clubs and 36 new registrations. Total liquid asset reached BRL 14.12 billion and the number of participants reached 140,037, according to the latest available December data.
Home Broker
In January, trading via Home Broker registered the following records: participation in the stock market's total volume was 21.10%, compared to 17.50%; and participation in the stock market`s number of trades reached 34.70%, compared to 32.10%.
The volume totaled BRL 54.50 billion, compared to BRL 46.53 billion in December; average daily volume reached BRL 2.72 billion, compared to BRL 2.32 billion; total number of trades reached 5,594,178 compared to 4,559,148 in December; the daily average of trades stood at 279,709, in contrast to 227,957;
The number of investors placing orders stood at 226.411, compared to 217,789 in December. In January, the number of brokerage firms offering Home Broker was 67, compared to 66 in December.
Securities Lending
The financial volume of stock lending transactions in the Securities Lending Bank (BTC) reached BRL 30.69 billion in January, in comparison to BRL 27.79 billion in December. The total number of trades reached 65,515, compared to 59.298 in the previous month.
Fixed Income
In January, the trading volume for the secondary market, counting both the Bovespa Fix and the Soma Fix, totaled BRL 31.31 million, compared to BRL 30.20 million in December. Of this total, debentures accounted for BRL 21.32 million, Credit Receivables Investment funds (FIDC) totaled BRL 9.81 million, and Real Estate Receivables Certificates (CRI) reached BRL 0.18 million.
ETFs
The financial volume registered in January by the four BM&FBOVESPA Exchange-Traded Funds (ETFs) reached BRL 422.09 million, in contrast to BRL 337.38 million in December. ETFs BOVA11, SMAL11, MILA11, and PIBB11 registered 7,119 trades. In the previous month, the number of trades was 5,440. ETF BOVA11 reached the highest financial volume in January, with BRL 371.96 million, in comparison to BRL 280.07 in December.
BM&F Segment (Derivatives and Futures)
Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 36,217,359 contracts and BRL 2.65 trillion in volume in January. That compares to 31,457,555 contracts and a volume of BRL 1.96 trillion in December. The daily average of contracts traded in the derivatives markets in January was 1,810,868, compared to 1,572,878 in the previous month. Open interest contracts ended the last trading day of January with 22,967,763 positions, compared to 25,740,612 in December.
Volumes and Trades – Financial Derivatives
Interest rate futures (ID) totaled in January 12,884,660 contracts traded, in contrast to 10,668,460 in December. The US dollar futures ended the month with 5,825,230 contracts compared to 5,643,180 contracts in the previous month. The Ibovespa futures traded 1,336,045 contracts in December, compared to 1,120,965 in the last month. The Euro futures contract (EUR) registered 10,610 contracts, in contrast to 18,420 contracts in December.
Volumes and Trades– Agribusiness Derivatives
In January, the BM&FBOVESPA agribusiness derivatives market (including futures and options) totaled 181,634 contracts traded, compared to 202,637 in December. Agribusiness markets totaled 97,630 open interest contracts at the end of the last trading day of January. In December, these contracts totaled 82,698. Cash settled corn futures contracts set a new record in January, with 50,886 contracts traded (futures and options), in contrast to 48,440 in the previous month.
Volumes and Trades – Minicontracts
The derivatives market for mini contracts traded 1,162,272 contracts in the month of January, compared to 1,081,156 in December. Of this total, the futures market for Ibovespa mini contracts traded1,059,512 compared to 989,554 contracts in the previous month. Mini U.S. dollar futures traded 100,641 contracts, compared to 87,217 in December. Mini futures contracts ended January with 21,556 open interest contracts, in contrast to 11,125 in the previous month.
Volumes and Trades – Spot Gold
The spot gold market (250 grams) traded, in January, 657 contracts, compared to 1,216 contracts in December. Spot gold market volume totaled BRL 10.54 million, compared to BRL 19.48 million in the previous month.
Investor Participation
In January, financial institutions led derivatives trading (BM&F segment), being responsible for 43.48% of contracts traded, compared to 46.07% in the previous month. Institutional investors were responsible for 27.17%, compared to 24.97%; foreign investors represented 20.02%, in contrast to 22.40%; individuals represented 5.12% compared to 4.51%; and companies, were responsible for 1.84% in contrast to 1.87% in the previous month.
Individual Investors
In January, there were 94,116 individual investors with at least one account registered at the Derivatives Clearinghouse, compared to 90,878 in the previous month.
Volumes and trades by Direct Market Access (DMA)
BM&F Segment
In January, derivatives market segment registered a total of 9,917,768 contracts traded via DMA*, with 1,203,321 trades carried out through the GTS trading platform. In December, the total was 8,238.292 contracts traded in 998,834 trades. The volumes registered by access modality in January in comparison to the previous month are as follows:
- Traditional DMA – 4,590,025 contracts traded, in 446,674 trades, in comparison to 3,546,606 contracts traded and 385,040 trades;
- Via DMA Provider – 2,723,958 contracts traded, in 61,019 trades, in comparison to 2,277,446 contracts traded and 57.677 trades;
- DMA via order routing with CME Globex (CME Group's electronic trading platform) – 2,284,904 contracts traded, in 618,746 trades, in comparison to 2,144,247 contracts and 506,991 trades.
- DMA via co-location – 318,881 contracts traded, in 76,882 trades, in comparison to 269,993 contracts traded, in 49,126 trades.
*Direct access to the Exchange's derivatives market segment is carried out through DMA models 1, 2, 3 and 4. In model 1 or traditional, the client accesses the GTS through the technological infrastructure of the brokerage house. In model 2 or via DMA provider, the client does not use the previously mentioned structure and connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. DMA model 3 allows direct access to the Exchange's electronic derivatives trading platform without technological infrastructure of a brokerage house or DMA provider. In model 4 or DMA via co-location, the clients install their own equipment inside the BMFBOVESPA facilities.
In January, equities* market segment transactions carried out through order routing via Direct Market Access (DMA) registered a financial volume of BRL 117.28 billion and 10,069,139 trades. In December, the financial volume was BRL 101.94 billion and 8,571,879 trades, respectively.
* Direct access to the equities market segment is carried out through DMA model 1. Also known as traditional model, in this type of DMA the client accesses the Mega Bolsa through technological intermediation of the brokerage house.
Note: DMA modality traded volumes includes both ends of the transaction (buy and sell).