Brazilian stock market set for new records in the second semester

Despite the Covid-19 pandemic, alarming rates of unemployment, and the general economic crisis Brazil is facing, the country’s B3 stock exchange is on the up. The first semester of the year featured several milestones, from a record entry of foreign investors, to Brazil’s benchmark stock index Ibovespa hovering around all-time-high levels. 

Now, the question that analysts are trying to answer is whether we can also expect good results in the second semester. Though the political situation could cause some turbulence, most analysts are cautiously optimistic.

“We have already started seeing positive results for this first semester, and probably in the second we will have strong results as well. The Stock Exchange is already expecting good things,” said Bruno Komura, an equity strategist at Ouro Preto Investimentos.

IPOs and follow-ons are expected to reach a total of 120 billion this year. If that happens, they could surpass the whole of 2020’s amount — BRL 119.3 billion.

By the end of June, B3 saw a record entry of foreigners into the secondary stock market. Not considering initial public offerings (IPOs) and follow-ons, net investments reached BRL 48 billion, the largest amount ever recorded (B3 records began in 2003). Until now, the most significant entry of foreign investors in the first semester was in 2015, with BRL 21.54 billion invested. 

Despite these records, large...