05/27/2009 09h17

Foreign investments double in April

Folha de S. Paulo – 05/27/2009

After a first quarter still marked by uncertainties, foreign investors resumed their investments in Brazil, with proceeds aimed both at the productive sector and at the financial market. According to data of the Central Bank (BC), in some cases the figures since April already get close to the levels seen before the worsening of the crisis, in September. The direct foreign investments, operations that involve both the purchase of Brazilian companies by multinational companies and the increase of the productive capacity already installed in the country, amounted to US$ 3.409 billion last month, more than twice March's.  On the other hand, the balance accumulated in the year to April continues below the balance seen in the same period of 2008. Between January and April, the flow of direct investments for the productive sector was of US$ 8.751 billion, a 31% fall in relation to the first four months of 2008. The data of May indicated, until yesterday, the net inflow of US$ 2.5 million.The increase was higher regarding the investments in the financial market. Last month, the foreign investments in stocks in the Stock Exchange amounted to US$ 630 million, and this month, according to partial data closed yesterday, they already reached US$ 2.365 billion. In case there isn't a greater outflow of funds until the end of the week, the result of May will be the best one already registered by the BC since April last year.The figures calculated by the BC concern the funds that have effectively entered and left the country because of the operations with stocks, and they differ from the balances made by Bovespa because, in this case, the Stock Exchange considers only operations in which foreign investors purchased or sold stocks, without, necessarily, entering or leaving the country. The figures of the fixed income market also seem to confirm the return of the foreign investors to the country. In the segment, investments amounted only to US$ 66 million in April, but they get to US$ 811 million in this partial estimate of the month.