Foreign investors have returned to Brazil’s stock market with force in 2025, injecting R$21.5 billion ($3.77 billion) into B3, the country’s main exchange, by the end of May.
This surge, based on official B3 data, marks the highest monthly inflow since 2019 and a sharp reversal from 2024, when the market saw a net outflow of R$24.2 billion ($4.25 billion).
B3, which operates Brazil’s stock and over-the-counter markets, reported total assets of R$46.3 billion ($8.12 billion) at the end of the first quarter, up 2.4% from December 2024.
Cash and financial investments reached R$17.1 billion ($3.00 billion), an 8.6% increase, largely due to a R$1.7 billion ($298 million) debenture issuance in January. Gross debt stood at R$14.9 billion ($2.61 billion), with 89% long-term.
The Ibovespa, Brazil’s main stock index, climbed 13.92% through May, reaching a record high above 140,000 points.
Foreign capital played a decisive role, with non-resident investors recording 18 consecutive trading sessions of net buying and injecting R$10 billion ($1.75 billion) in May alone.
Brazil’s Stock Market Sees in Early 2025 Strongest Inflow of Foreign Money Since 2019
Regulatory changes effective January 2025 simplified rules for foreign investors and eliminated the need for local representation, making Brazilian markets more accessible.
B3’s first quarter saw recurring net income of R$1.13 billion ($198 million), almost flat year-over-year.
Brazil’s Stock Market Sees in Early 2025 Strongest Inflow of Foreign Money Since 2019
The company’s 2025 guidance projects adjusted expenses between R$2.26 billion and R$2.45 billion, with capital expenditures from R$240 million to R$330 million.
Depreciation and amortization are expected between R$340 million ($60 million) and R$400 million ($70 million).
B3 invested R$31.7 million ($5.56 million) in technology upgrades and returned R$786.5 million ($138 million) to shareholders through interest on capital and share buybacks.
The exchange also entered the Dow Jones Sustainability Index for Emerging Markets, reflecting a growing focus on ESG practices.
The real story is renewed confidence in Brazil’s market fundamentals and the effectiveness of regulatory reforms.
This foreign capital inflow boosts liquidity, strengthens the local currency, and supports broader economic stability.
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