THE B3 (B3SA3) announced this Friday the revision of the balance of foreign resources that entered the Brazilian stock exchange in 2021 from 102.3 billion reais to 41.5 billion reais.
The review takes place after the operator of the handbag identify a methodological error, disclosed in April, that had skewed the numbers since October 2020.
In addition, B3 said that the review announced this Friday also includes a temporal anticipation of the settlement of buy and sell operations in shareswhether subsequent (follow-ons) or initials (IPOs).
Previously, operations carried out by foreigners in share offerings were accounted for by B3 only in the disclosure by the companies notice of closing of the offer, which can take up to six months.
Now, the data takes into account the exchange’s own settlement information, which takes only days.
“Now it is possible to reconcile the movements of the primary and secondary markets. If any foreign investor sold on the secondary market to make an acquisition in IPOwe will show both the sale in the secondary (market) and the purchase in the primary”, said Luís Kodic, director of products and data at B3, to journalists.
If B3 had revised the 2021 numbers just for the methodological error, the negative impact would have been 77.9 billion reais.
However, due to the temporal change in the settlement of operations in IPOs and follow-ons, which has a positive effect of 17.1 billion reais, the total figure fell by 60.8 billion compared to what had been previously disclosed, to 41.5 billion reais.
For 2020, the total impact on the entry and exit data of foreigners was positive at 3.3 billion reais, which made the balance, until then reported as an outflow of 2.6 billion reais from B3 in the year, remain positive in about 700 million reais.
The impact in 2020 is smaller given that the methodological error started in October of that year, when B3 started offering loan operations on screen, said Kodic.
Methodological Error
The methodological error disclosed in April is related to the inclusion of stock lending operations on screen from October 2020.
This data should not have been included as entry and exit of foreigners, because there is no financial flow in the operation, according to B3.
At the time of the review in April, the balance of foreign flows on the Brazilian stock exchange was corrected from an inflow of 91.1 billion reais to 64.1 billion reais in the first quarter.
The current total balance in 2022 is an entry of 49.3 billion reais, until May 18, already including the effect of the change in the temporal accounting of stock offerings.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
