Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 30,581,912 contracts and BRL 2.20 trillion in volume in July. That compares to 39,451,916 contracts and a volume of BRL 2.66 trillion in June. The daily average of contracts in the derivatives markets in July was 1,390,087, compared to 1,878,663 in the previous month. BMF segment highlight for the month of July is: DMA via order routing with CME Globex (CME Group’s electronic trading platform) that traded 1,278,064 contracts, in 156,262 trades, in comparison to 941,892 contracts and 112,621 trades in June.
BOVESPA Segment (Equities)
Volumes and Trades – Equities, Equities Derivatives and Fixed Income
The Bovespa markets reached a total volume of BRL 107.47 billion in 7,021,826 trades in July, with daily averages of BRL 4.88 billion and 319,174 trades, respectively. In June, total volume reached BRL 112.74 billion in 7,044,608 million trades. June’s daily averages reached BRL 5.37 billion and 335.458 trades.
The most traded stocks in July were: VALE PNA, with BRL 11.97 billion; PETROBRAS PN, with BRL 11.66 billion; VISANET ON, with BRL 4.95 billion; ITAUUNIBANCO PN, with BRL 3.81 billion; and USIMINAS PNA, with BRL 3.20 billion.
Indexes
The Ibovespa ended July 6.41% higher at 54,765 points. Best performing stocks were: GAFISA ON (+45.21%); ROSSI RESID. ON (+31.71%); VCP PN (+31.65%); CYRELA REALT ON (+29.63%); and LOJAS RENNER ON (+26.73%). Worst performing stocks were: TIM PART S/A ON (-17.46%); LIGHT S/A ON (-9.83%); REDECARD ON (-4.87%); PETROBRAS ON (-3.07%); and CCR RODOVIAS ON (-2.96%).
In addition to the Ibovespa, the remaining stock-exchange indexes also ended July up: IBrX-50 (+4.68% at 7,808); IBrX-100 (+4.98% at 17,489 points); ISE (+5.90% at 1,539 points); ITEL (+5.15% at 1,221 points); IEE (+2.63% at 20,975 points); INDX (+10.88% at 8,002 points); IVBX-2 (+7.95% at 4,558 points); IGC (+8.37% at 5,358 points); ITAG (+8.20% at 6,951 points); Small Cap (+15.93% at 835 points); MidLarge Cap (+4.06% at 782 points); Iconsumo (+10.05% at 1,051 points); and Imobiliário (+30.14% at 742 points).
Market Value
Market capitalization of the 388 companies listed on the BM&FBOVESPA in July was BRL 1.89 trillion, compared to BRL 1.79 trillion concerning of the 389 companies listed in June.
Special Corporate Governance Levels
The 159 companies part of the BM&FBOVESPA’s special corporate governance levels at the end of July represented 60.55% of the market capitalization, 76.30% of trading volume, and 81.01% of the trades in the spot market.
Market Participation
The spot market accounted for 94.2% of total trading volume in July, followed by the options market, with 3.6%, and by the forward market, with 2.3%. The after market traded BRL 1.20 billion with 106,865 trades, compared to BRL 1.05 billion and 100,170 trades in the previous month.
Investor Participation
In July, foreign investors were responsible for 37.93% of the total volume, compared to 36.50% in June. Individuals took second place, with 29.12%, compared to 28.61%; institutional investors had 25.94%, compared to 25.65%, financial institutions, with 4.92%, compared to 6.10%; companies, with 2.01%, the same as last month’s; and other types of investors, 0.08%, compared to 0.05%.
Foreign Investment
The net flow of foreign investment into the Brazilian stock market in 2009 as of July 30 is a positive BRL 20.15 billion, which is the combined result of the amount of BRL 7.84 billion in acquisitions carried out by foreign investors in the stock offerings and the positive balance of BRL 12.31 billion in direct trading at BM&FBOVESPA.
In July, the financial volume traded by foreign investors in the stock market is a positive BRL 2.20 billion, which is the net balance between stock sales of BRL 39.56 billion and stock purchases of BRL 41.77 billion.
The foreign investor participation in stock offerings, including IPOs, represented 64.7% of the total BRL 12.12 billions in transactions related to the publication of the closing announcement dates ending on August 4, 2009.
Individual Investors
BM&FBOVESPA ended July with 521,555 individual investor accounts in custody. The stock exchange had 521,196 such accounts in June.
Investment Clubs
The BM&FBOVESPA ended June with 2,820 investment clubs and 25 new registrations. Total liquid asset reached BRL10.50 billion and the number of participants reached 145,141, according to the latest available June data.
Home Broker
Volume in Home Broker trades totaled BRL 35.41 billion in July, compared to BRL 37.51 billion in June. Home Broker’s average daily volume reached BRL 1.60 billion, compared to BRL 1.69 billion, and the average amount per transaction BRL 8,530, compared to BRL 9,150; total number of trades reached 4,009,369 compared to 3,988,313.
Home Broker’s participation in the stock market’s July’s total volume was 16.50%, compared to 15.80% in June, while total number of trades reached 28.50%, compared to 28.30%. The number of investors placing orders stood at 211,853, compared to 207,793 in June. In July, the number of brokerage firms offering Home Broker increased to 67, compared to 66 in June.
Securities Lending
The financial volume of stock lending transactions in the Securities Lending Bank (BTC) reached BRL 23.58 billion in July, in comparison to BRL 21.15 billion in June. The total number of trades reached 65,791, compared to 63,073 in the previous month
Fixed Income
In July, the trading volume for the secondary market, counting both the Bovespa Fix and the Soma Fix, totaled BRL 37.74 million, compared to BRL 14.93 million in June. Of this total, debentures accounted for BRL 16.81 million, Real Estate Receivables Certificates (CRI) accounted for BRL 1.61 million, and Credit Receivables Investment funds (FIDC) accounted for BRL 19.32 million.
ETFs
The financial volume registered in July by the four BM&FBOVESPA Exchange-Traded Funds (ETFs) reached BRL 477.13 million, in comparison to BRL 493.12 million in June. 5,635 trades were registered with ETFs BOVA11, SMAL11, MILA11, and PIBB11. In the previous month the number of trades was 6,043. ETF BOVA11 reached the highest financial volume in July, with BRL 399.25 million, in comparison to BRL 443.67 in June.
BM&F Segment (Derivatives and Futures)
Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 30,581,912 contracts and BRL 2.20 trillion in volume in July. That compares to 39,451,916 contracts and a volume of BRL 2.66 trillion in June. The daily average of contracts in the derivatives markets in July was 1,390,087, compared to 1,878,663 in the previous month.
Volumes and Trades – Financial Derivatives
Interest rate futures (DI) was one of July’s highlights, totaling 12,309,223 contracts, compared to 17,474,995 in June. The US dollar futures ended the month totaling 5,528,420 contracts compared to 5,910,735 contracts in the previous month. The Ibovespa futures traded 1,202,575 contracts in July, compared to 1,342,335 in the last month. Open-interest contracts ended the last trading day of July with 18,244,808 positions, compared to 18,769,870 in June.
The Euro futures contract (EUR) registered 3,095 contracts, in contrast to 3,600 contracts in June.
Volumes and Trades – Agribusiness Derivatives
In July, the agribusiness derivatives market on BM&FBOVESPA (including futures and options) totaled 169,150 contracts traded, compared to 179,402 in June. Agribusiness markets totaled 85,657 open interest contracts at the end of the last trading day of July. In June, these contracts totaled 81,430.
In July, live cattle totaled 74,444 contracts, compared to 50,839 (June); Arabica coffee totaled 52,688, compared to 81.251 (June); soybean totaled 13,993, compared 19,336 (June). Corn futures with financial settlement set a new trading record, with a total of 28,025 contracts, in contrast to 27,976 in the previous month.
Volumes and Trades - Minicontracts
The derivatives market for mini contracts traded 993,608 contracts in the month of July, compared to 1,007,996 in June. Of this total, the futures market for Ibovespa mini contracts traded 939,290, compared to 965,832 contracts in the previous month. Mini U.S. dollar futures traded 52,123 contracts, compared to 38,521 in June. Mini futures contracts ended July with 20,431 open interest contracts, compared to 10,252 in the previous month.
Volumes and Trades – Spot Gold
The spot gold market (250 grams) traded, in July, 857 contracts, compared to 572 contracts in June. Spot gold market volume totaled BRL 12.29 million, compared to BRL 8.47 million in the previous month.
Investor Participation
In July, financial institutions led derivatives trading (BM&F segment), responsible for 45.20% of contracts traded, compared to 44.44% in the previous month. Institutional investors were responsible for 24.50%, compared to 25.55%; foreign investors, 20.24%, compared to 19.45%; individuals, 7.37% compared to 7.51%; and companies, with 2.69%, versus 3.05%.
Individual Investors
In July, there were 66,510 individual investors with at least one account registered at the Derivatives Clearinghouse, compared to 67,188 in the previous month.
Volumes and trades by Direct Market Access (DMA)
BM&F Segment In July, BM&F market segment registered a total of 6,211,660 contracts traded via DMA*, with 558,180 trades carried out through the GTS trading platform. In June, the total was 6,152,638 contracts traded in 521.728 trades. The volumes registered by access modality in July in comparison to the previous month are as follows:
- Traditional DMA – 3,885,776 contracts traded, in 383,822 trades, in comparison to 4,103,621 contracts traded and 399,727 trades;
- Via DMA Provider – 1,030,300 contracts traded, in 16,763 trades, in comparison to 1,104,205 contacts traded and 9,093 trades;
- DMA via order routing with CME Globex (CME Group’s electronic trading platform) – 1,278,064 contracts traded, in 156,262 trades, in comparison to 941,892 contracts and 112,621 trades.
- DMA via co-location – 17,520 contracts traded, in 1,333 trades, in comparison to 2,920 contracts traded, in 287 trades.
* Direct access to BM&F market segment is carried out through DMA model 1 and 2. In model 1 or traditional, the client accesses the GTS through technological intermediation 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 provides. DMA via order routing with CME Globex is also a form of DMA model 2.In model 4 or via co-location, the client installs his own computer server in the Exchange.
BOVESPA Segment
In July, BOVESPA* market segment transactions carried out through order routing via Direct Market Access (DMA) registered a financial volume of BRL 81.65 billion and 7,482,273 trades. In June, the financial volume was BRL 82.39 billion and 7,474,495 trades. The volumes registered by access modality in July in comparison to the previous month are as follows:
- DMA – Retail Modality – BRL 35.41 billion and 4,009,369 trades, in comparison to BRL 35.51 billion and 3,998,313 trades;
- DMA – Managers Modality – BRL 16.48 billion and 1,018,329 trades, in comparison to BRL 17.53 billion and 993,756 trades;
- DMA – Institutional Modality – BRL 29.75 billion and 2,454,575 trades, in comparison to BRL 29.33 billion and 2,492,426 trades.
* Direct access to Bovespa 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.