In the last few days, the Brazilian stock exchange suffered the worst flight of foreign capital in about ten years, after the intervention of the government of Jair Bolsonaro in command of Petrobras (PETR4). According to Valor Econômico, foreign investors withdrew R $ 9.2 billion of the stock market in a short period of three trading sessions counted from the outbreak of the crisis on Friday, according to the most recent data from B3.Petrobras (PETR4): Justice extinguishes Previ's judicial mortgage action
According to the newspaper, considering only the session on Monday, when the shares of the state-owned company fell more than 20%, the stampede of foreigners reached R $ 6.8 billion – the highest level ever recorded in the entire series started in 2012 for Valor Data. It was precisely in that session that the market was able to react to President Jair Bolsonaro's decision to remove Roberto Castello Branco from the company's management and appoint General Joaquim Luna e Silva to the post. The announcement was made on Friday night, after Bolsonaro's criticisms of the increase in fuel prices by the state-owned company.
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And if the decision, published on social media, was not enough, Bolsonaro said that other changes would be coming.
According to the newspaper, what draws attention is that the outflow of funds from foreigners continued strong on Tuesday, despite the technical recovery of Petrobras and Ibovespa shares. Foreigners withdrew R $ 2.3 billion from B3 while local investors acted on the buying side. With this movement, the flow turned to negative in February with an outflow of R $ 4.6 billion, but still has a surplus of R $ 18.9 billion in the year. The numbers consider the secondary market (listed shares) as a and give clear signs of a worsening of the perception of risk in relation to the local market – especially now that the tension abroad makes the global investor more selective. And due to yesterday's movement in the market, the risk is that the negative flow go deeper. The Ibovespa fell 2.95%, to R $ 112,256 points, while Petrobras shares fell sharply – the ON lost 3.87% and the PN yielded 4.96% – due to the global risk aversion and Bolsonaro's statements about the state-owned company.
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Only click here if you are already an investorThe post Petrobras (PETR4): crisis in the oil company triggers historical flight of foreign capital, says newspaper first appeared in 1 Billion Financial Education.