THE Ibovespa the main index of the Brazilian stock exchange, had the second worst performance in relation to the indexes of the stock exchanges of 78 countries in the month of April, according to a survey by the risk rating agency Austin Rating obtained exclusively by the CNN Brasil Business .
The position was the result of a negative month for the Brazilian stock market, mainly affected by the fall in shares linked to commodities with a strong weight on the Ibovespa, due to fears of reduced demand amid the lockdowns in China .
The faster interest rate hikes in U.S it also increased investors’ risk aversion, harming markets such as Brazil.
The month of April was the first month of the year with investments foreigners in stock Exchange . The scenario also affected the performance of the real against the dollar, which had the 37th worst performance among 120 countries.
According to data from Austin Rating, in April the real devalued 3.7%, while the Ibovespa dropped 14.3%, considering the variation in dollars, being behind only the WIG20 index, of the stock exchange Poland which dropped 17.6%.
Despite the fall in April, the Ibovespa’s annual performance in dollar it is still among the ten best in the world due to the appreciation of the real, up 15.3%, in ninth position. Considering the variation in the local currency, the index accumulates an advance of 2.9% in the year, in the 23rd position.
The real remains among the currencies that appreciated the most in the year, with an increase of 13.4%, in third position.
The Brazilian currency was favored in the first quarter of the year due to the combination of high interest rates, discounted assets on the stock market and high commodity prices, which attracted foreign capital to the country.
In the month, the worst performing currencies against the dollar were the Sri Lanka (-16.9%), which faces an economic and political crisis, and the Hungary (-7.6%), which underwent a parliamentary election.
The best performances were Seychelles (17.4%) and Russia (14.7%), whose ruble recovered part of the losses linked to the sanctions due to the invasion in ukraine . The Ukrainian currency fell by 4.7% in April.
Among the stock market indices, the Nasdaq whose stock exchange concentrates shares of technology companies, had the fourth worst performance of the month, with a drop of 13.3%.
The biggest rise in April was the Zimbabwe stock exchange index, up 58.7%, favored by the rise of the dollar around the world. Jordan’s Amman SE was the second best performer, advancing 8.8%.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
