Foreign Investors Pull About R$22 Billion From B3 in Mid‑August

Overview

• Foreign investors sold heavily in mid‑August, withdrawing R$496.1 million on Monday, R$1.7 billion on Wednesday and R$1.6 billion on Thursday and creating a monthly deficit of roughly R$22 billion.
• Institutional buyers supplied roughly R$1 billion on Thursday and have a monthly surplus near R$13.4 billion that has partially offset foreign exits.
• Individual investors also added to the market, contributing about R$2.5 billion for the month and helping steady trading volume in the secondary equity market.
• Despite the foreign outflows, the Ibovespa recovered and closed the week with a 2.45% gain as commodity shares rose and investors shifted toward assets tied to global demand.
• The withdrawals raise risks for liquidity, the real and investor sentiment because foreign flows affect funding and price depth, so markets will be watching US Treasury moves, commodity demand and Brazil’s fiscal and electoral signals for the next shifts.