Ibovespa closes down with Wall St and PEC

The Ibovespa closed down last Monday, marking an index below 110,000 points. Wall Street contributed to the negative trend after a week marked by gains in the Brazilian trading session, while financial agents continued to wait for the outcome of the PEC.

Ibovespa closes down with Wall Street and PEC

Last Monday, the Ibovespa closed down, with the index below 110,000 points. Wall Street contributed to these results after a week marked by gains in the Brazilian trading session, while financial agents awaited the outcome of the PEC. 

The benchmark index for the Brazilian market ended down 2.3% at 109,349.37 points, according to preliminary data. 

This financial volume amounted to 19.6 billion reais, but the pace slowed down in the afternoon, when the Brazilian team's World Cup match took place. In one year, the average daily turnover is 29.95 billion reais. 

About the Ibovespa

Most people have heard of the Ibovespa, but have no idea what it means. If you're just starting out in the investment world, you'll probably come across this term a lot: the Ibovespa has "fallen" or "risen". 

Initially, most investors confuse the following terms: BM & F Bovespa, the former name for the São Paulo stock exchange. It is now known by another name, B3, the Brazilian Stock Exchange. 

The Ibovespa, or IBOV, is the index that marks the thermometer of the Brazilian market. The system basically measures the average performance of the theoretical portfolio with the most representative shares on the stock exchange, using a bank of points that takes the real into account. 

Founded in 1968, the Ibovespa is the total return index. This index reflects all the impacts of payments in all categories, as well as a company's shares, not just the day-to-day price changes on the market. 

What is the composition of the portfolio? 

Now that you've understood what Ibovespa is, it's time to learn about its composition. In general terms, this portfolio re-evaluates the composition of the IBOV portfolio over a four-month period. The main elements for making the index are: good liquidity and good financial volume. 

For shares and units to make up the Ibovespa, they must have the following characteristics: 

• The assets must be eligible, i.e. have a marketable percentage of up to 85%;
• Present a market presence of up to 95% in the last year;
• Have a financial volume of 0.1% on the spot market; 
• Last but not least, it can't be a Penny Stock. In other words, stocks with prices below 1 real. 

The weight that each stock has in the index can change at any time. This happens mainly depending on the volume of assets that the same company has in its portfolio. In this case, if the Ibovespa doesn't rise, it doesn't mean that the shares didn't rise, but that other assets weighed more than others. 

Petrobras, for example, is one of the largest companies on the Stock Exchange. After all, it marks a major index, being responsible for the Ibovespa score falling or rising. But these are not the only points considered for this variation. 

Ibovespa calculation 

The Ibovespa is calculated in real time, with results based on the price of each share that is part of the index. In addition, the value is calculated by the number of theoretical assets in the portfolio. 

The points in the portfolio are worth one real, which means that when the score is 85,000 points, the assets are worth one real. This index is important because it serves as a parameter for people who want to trade on the trading floor.

By analyzing the graphs and observing the stock prices on a daily basis, investors can get a sense of how the country's economy is doing. They can also find out how healthy companies are and, above all, whether or not they are worth trading. 

Ibovespa shares

First of all, Ibovespa shares make up around 80% of the trading volume that takes place in each trading session. The number of assets that make up the index varies every four months, but usually remains at around 90 shares. 

There are more than 400 companies listed on the Stock Exchange, for example, making it an excellent basis for comparison. In this sense, around 22% of the shares on this exchange represent almost 80% of the trading volume taking place there. 

In short, this index is made up of companies from various segments, such as finance, gas, health, among others. Although this composition is periodically reassessed, some companies always remain there, such as Petrobras. 

If you want to keep up to date with the Ibovespa, visit the official B3 (Brazilian Stock Exchange) website. Information on the contents is updated daily. This portfolio includes the name and types of assets, as well as the quantity and percentage of their participation. 

Although most people think they are different, B3 and Ibovespa are the same thing. This is because both terms refer to the Brazilian Stock Exchange, where all trading in market assets takes place. 

Ibovespa Index

Since 2017, the Brazilian Stock Exchange has been known as B3. The synonym for Ibovespa is the Bovespa Index. This term is well known among investors, referring to the national and international markets. 

The main difference between the Bovespa Index and B3 is that not all the assets that make up the Stock Exchange are present on the Ibovespa. This is because the shares that make up the Ibovespa are mainly traded among investors. 

However, there are more stocks, outside the Ibovespa, that can be traded. B3 is the only stock exchange operating in the country, bringing together several national companies and the assets of international companies.