On October 26, iShares MSCI Brazil ETF fell 25.33% in Regular Trading, trading at $31.5093/share, with turnover of $1.51 billion.
The move followed Brazil’s presidential election result, with Luiz Inacio Lula da Silva winning reelection and triggering a sharp repricing across Brazil-linked assets.
Market reports showed Ibovespa futures dropping 15% and hitting circuit breakers, while real futures also slid to trading limits. Investors focused on risks to fiscal discipline, Brazil’s debt burden above 82% of GDP, and the possibility of renewed intervention in Petrobras fuel pricing. Earlier in the day, Brazil-focused assets listed in the US had already come under pressure, with the ETF indicated down more than 20% and Petrobras shares falling sharply, underscoring the breadth of the policy-driven selloff.
The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index is a free float-adjusted market capitalization-weighted index designed to measure the performance of the large- and mid- capitalization segments of the equity market in Brazil. The fund is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments