The Bovespa Index is one of the major indexes that are indicators of the Brazilian economy, what is the Bovespa Index?
Bovespa Value Index is currently 111,203 down -0.35% , 100,093 is the lowest value in January 2022. Through this article, we will find out more about the Bovespa index.
Contents
Bovespa Index explained
From the Wikipedia document, it is known that the Bovespa index is a collection of shares of more than 50 companies listed on the commodity and futures stock exchange in Sao Paulo Brazil.
The Brazilian Stock Exchange is often referred to as B3. Where the shorts stands for Brasil Bolsa Balcão S.A, which means Stock Exchange, and Free Market.
In 2011 this Exchange managed to become the 13th ranked exchange with a market capitalization of US$1.22 Trillion.
Previously this exchange was BM&FBOVESPA which is the result of the merger of the São Paulo Stock Exchange (Bovespa) and the Brazilian Commodity and Futures Exchange (BM&F) in 2008. And in 2017 BM&FBOVESPA merged with CETIP, which later gave birth to B3.
Where is Bovespa located?
Bovespa is located in Sao Paulo Brazil, it is the largest city in Brazil. The name Sao Paulo was taken in honor of Saint Paul, and the city is the 7th largest metropolis in the world.
In this city is the location of Bovespa which is the second-largest stock exchange in the Americas, and in this city also stands the tallest building in Brazil, Mirante do Vale and Edifício Itália.
What does Bovespa stand for?
Bovespa stands for Bolsa de Valores do Estado, this is Portuguese which means Stock exchange, state of Sao Paulo.
That’s because Brazil uses Portuguese which is the daily language of the Brazilian people. From historical records, Brazil is one of the former colonies of Portugal, so it is not surprising that the official language of this country is Portuguese.
This country gained independence from Portuguese colonialism on September 7, 1822, after three centuries since 1494 as a colony.
How many stocks are in the Bovespa index?
Citing to the B3 website, the composition of the Bovespa Index currently has 91 shares from various types of companies, both in the gas and telecommunications industries.
The composition of the Ibovespa Index is from major companies in Brazil, so by investors, this index is often a reference when they want to invest in that country.
Bovespa stocks companies
The composition of the Bovespa Index may change because to be included in the Bovespa index list, there are criteria so that the company’s shares are eligible to be included in the Bovespa index list.
At the time of writing, referring to the official B3 website, there are 91 stocks included in the Bovespa index.
The company has a high market capitalization, so it is eligible enter in the list. The following stock companies are included in the Bovespa index list.
3R Petroleum, ALPARGATAS, AMBEV S/A, AMERICANAS,ASSAI,AZUL, B3, BANCO INTER, BANCO PAN, BBSEGURIDADE, BR MALLS PAR,BRADESCO, BRADESPAR, BRASIL, BRASKEM, BRF SA,BTGP BANCO,CARREFOUR BR, CCR SA. CEMIG, CIELO, COGNA ON, COPEL, COSAN, CPFL ENERGIA, CSNMINERACAO, CVC BRASIL, CYRELA REALT, DEXCO,ECORODOVIAS, ELETROBRAS, EMBRAER, ENERGIAS BR, ENERGISA, ENEVA, ENGIE BRASIL,EQUATORIAL.EZTEC. FLEURY, GERDAU, GERDAU MET, GOL,GRUPO NATURA, GRUPO SOMA,HAPVIDA,HYPERA, IGUATEMI S.A, IRBBRASIL RE, ITAUSA, ITAUUNIBANCO, JBS, JHSF PART, KLABIN S/A, LOCALIZA, LOCAMERICA, LOCAWEB, LOJAS RENNER, MAGAZ LUIZA. MARFRIG, MELIUZ, MINERVA, MRV, MULTIPLAN, P.ACUCAR-CBD,PETROBRAS,PETZ, POSITIVO TEC, QUALICORP, RAIADROGASIL, REDE D OR, RUMO S.A.,KSABESP, SANTANDER BR, SID NACIONAL, SUL AMERICA. SUZANO S.A. TAESA, TELEF BRASIL, TIM, TOTVS, ULTRAPAR, USIMINAS, VALE, VIA, VIBRA, YDUQS PART, ETC.
Bovespa exchange trading hours
The trading hours of the Bovespa Exchange, unlike forex trading hours, are in turn every market session is continuous with each other.
Bovespa’s general trading hours are from 10.00 am to 5:55 pm from Monday to Friday. Except for fixed income ETFs, there is additional aftermarket trading from 17:25 to 18:45. Citing from B3, here’s a complete list of Bovespa’s trading hours:
Trading hours market3
- Cash Market, for order cancellation from 09:30-09:45, pre-opening from 09:45-10:00, trading from 10:00-17:55, and closing call from 17:55-18: 00.
- Odd lots market, for order cancellation from 09:30-09:45, pre opening from 09:45-10:00, trading from 10:00-17:55, closing call from 17:55-18: 00.
- Forward market, trading starts from 10:00-18:25.
- Options market, order cancellation from 09:30-09:45, pre opening from 09:45-10:05, trading from 10:05-17:55, closing call from 17:55-18:15.
- BOVESPA Mais – All securities, order cancellation from 09:30-09:45, pre-opening from 09:45-10:00, trading from 10:00-17:55, closing call from 17:55-18 :00.
- BDRs, order cancellation from 09:30-09:45, pre opening from 09:45-10:00, trading from 10:00-17:55, closing call from ham 17:55-18:00.
- Investment Funds, order cancellation from 09:30-09:45, pre opening from 09:45-10:00, trading from 10:00-17:55, closing call from 17:55-18:00.
- Stock Exchange Traded Fund, order cancellation from 09:30-09:45, pre-opening from 09:45-10:05, trading from 10:05-17:55, closing call from 17:55-18: 15.
- Fixed Income ETF, order cancellation from 09:30-09:45, pre opening from 09:45-10:00, trading from 10:00-16:55, closing call from 16:55-17:00 . After market trading 4, order cancellation from 17:25-17:30, negotiation from 17:30-18:00, order cancellation from 18:15-18:45.
- OTC Markets -All securities, order cancellation from 09:30-09:45, pre-opening from 09:45-10:00, trading from 10:00-17:55, closing call from 17:55-18:00.
- Equity index options, order cancellation from 09:30-09:45, pre opening from 09:45-10:05, trading from 10:05-17:50, closing call from 17:50-18:15.
Trading hours market2
- Options on equities, units and ETFs Manual exercise of Holder’s Position from 10:00-17:00 Before expiration, Manual exercise of Holder’s Position from 10:00-15:00 On expiration, Positions File [Imbarq] starting at 17: 45 on expiration, Contrary Exercise from 18:30-19:00 on expiration, Automatic Exercise of Holder’s Position from 19:00 on expiration.
- Equity index options, Automatic Exercise of Holder’s Position starts at 18:00 on expiration.
How is Bovespa calculated?
As a performance indicator of the main stocks traded on the exchange. Ibovespa calculated from reference prices on February 1, 1968.
The calculation also involves market capitalization, liquidity, industry, corporate governance, and sustainability.
Every four months the index list will be reviewed to monitor the theoretical portfolio of stocks. The methodology used accounts for about 80% of the total trading and financial volume of the capital market.
How to buy Bovespa
The Bovespa index is often for benchmark by investors to invest in Brazil. But when after seeing these benchmarks, investors are interesting in buying shares on the Bovespa stock exchange, then how?
An interesting article from TheBrazilBusiness can guide potential investors who want to buy shares on the Bovespa stock exchange.
- The first is to negotiate, investors need a brokerage firm that has legality from the Brazilian Securities Commission of Values, known as CVM.. This is the Brazilian regulatory body that regulates brokerage firms.
- Next is to register with the brokerage firm. Required data: Name, occupation, address, photocopy of ID Card, CPF copy, and proof of resident copy.
- After you submit these documents, the company will open an account for you on Bovespa. The company acts as your bridge with the Bovespa exchange.
How do you trade in Bovespa?
How to trade at Bovespa, this can be through two types, the first acting as an individual investor, and the second collectively.
In the first type, investors register with brokerage firms that act as intermediaries between individual investors and the exchange.
The second type, collectively, with a minimum of 3 members and a maximum of 150 people. The types are collectively split into two, investment club and stock funds. Those who manage both are brokerage companies and other institutions, with the aim of diversifying their portfolio in stock investments.
Trading in Bovespa has rules and characters, where for equities trading requires collateral, with the amount of assets or the amount of cash used by investors to secure new trades. This is commonly refers to leverage.
Is Bovespa a good investment?
The Bovespa index value always goes up and down, in early 2022 the Bovespa index value was at a low of 101,561, but then moved up slowly. In February the value of Ibovespa rose to the level of 113,228.
In March the value of the Bovespa index rose again to the level of 115,173, although it fell again to 111,593. The potential for an increase in the Bovespa index value on average has increased since early January in 2022.
This indication provides an overview of the average companies listed in the index experiencing good progress. The rest investors can choose which investments might provide good opportunities in Bovespa.
Bovespa price prediction
TradingEconomics forecasting BOVESPA at the end of the quarter was trading at 112665.10, and the next twelve months it was trading at 107410.75.
Longforecast predicts Bovespa will decline month by month in 2022 with the value in December at the level of 100126. However, the value will start to increase in 2023 with the end of December reaching 111929. Forecasting 2024 in March, the value of Bovespa will reach 129571.
Macroaxis through a technical analysis approach predicts Bovespa after hype to reach $ 113776.0. However, it does not specifically predict the value on certain years and date.
Final thought
Ibovespa, is a Brazilian index that is a measure of the economic strength of the Brazilian state because the index list contains major companies in Brazil.
Ibovespa is one of the global major Indices, where investor keep monitoring value of indices. For them very important when they want to invest in financial markets in Brazil.
Note: This article is for informational purposes only and does not constitute advice, or a solicitation of investment. Forex, CFDs, crypto are risky assets, each investor is responsible for their investment.
You may like
