Emergentes recebem fluxo pela 6ª semana — mas o Brasil ficou fora

Emerging markets have received foreign investments for the sixth consecutive week, according to a JP Morgan report. The net inflow of emerging market equity funds was $1.2 billion between August 13-19. Over four weeks, the flow amounted to $11 billion. Meanwhile, Brazil's Bolsa ("continued a heavy selloff," said JP Morgan), losing $1.6 billion from August 12-18.

The previous week, B3 had already suffered withdrawals of $2.3 billion – the largest weekly outflow since March 2020, the peak of the initial pandemic shock. In four weeks, local market withdrawals totaled $4.3 billion. For the year, the balance is positive at $2.8 billion, thanks to the inflow that flooded the market from January to March.

The numbers suggest that discounted valuations of Brazilian companies have not been enough to attract investors amid various domestic issues, from election uncertainty to the impact of high interest rates on the balance sheets of banks and companies. Between the end of July and early August, withdrawals were led by GQG, an American firm specializing in emerging markets, according to Brazilian managers.

Latin American exchanges lost $770 million in foreign resources in the last week and $1.1 billion in four weeks, according to the bank. Korea reversed a sequence of withdrawals and received $1.1 billion from August 13-19. Taiwan, another AI-driven market, captured $2 billion. The JP Morgan report also shows that investors' preference for ETFs remains clear – though the pace of withdrawals in equity funds has recently slowed.

In the year, ETFs received $108 billion in net inflows, while funds had withdrawals of $34 billion. Last week, ETFs captured $1.4 billion, while funds lost $245 million. Between March and mid-July, fund withdrawals totaled over $2 billion per week.