Foreigners leave B3, index falls 13.36% and the question is why individual investors bought
After an outflow of around R$2.85 billion in one day, individuals bought, and the foreign flow increased again after the first round.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
The B3 index closed down 13.36% on Monday (26), according to InfoMoney, and fell 17% during the trading session. The session has already opened with the circuit breaker activated, a mechanism that interrupts negotiations when losses reach certain limits.
Also according to the report, foreign investors withdrew around R$2.85 billion in a single day. The departure, however, did not start on Monday: it had been going on since the previous week.
The headline places the exit after the elections, which brings the topic to the center of the debate on interest rates, the dollar and fiscal policy. The facts established, however, do not detail the causes of the movement.
The scenario changed direction soon after. According to the report, after the first round, foreign flow increased by around R$10 billion, and the strong inflow of foreign capital was repeated in the days following the first round.
This is where InfoMoney finds the central point of the agenda: while some foreigners left the stock market, individual investors were buyers. The article asks why this happened, and this question organizes the entire text.
What changes for the investor
For investors, the episode reinforces that the flow of external capital can weigh heavily on prices in times of stress, and that changing the direction of this flow can quickly alter the trading environment. Movements of this magnitude increase volatility and require attention to the size of positions and the ability to withstand losses. This article does not recommend buying or selling assets and does not project prices.
Automatically translated from Portuguese.
