BRASILIA (Reuters) - Brazilian investors are pouring a record amount of cash into local equity funds, while foreign investors notched up their sixth straight week of buying, Bank of America Merrill Lynch said on Friday.
Domestic investor inflows into Brazilian equity funds last week totaled $5.4 billion, the highest since the series started in 2014 and the 10th weekly inflow in a row, BAML said.
The average inflow over that 10-week period is $3.5 billion, around double the weekly average of $1.8 billion over the course of last year, BAML added.
Brazil’s benchmark Bovespa stock market surged 32% last year, more than double the MSCI emerging market index’s 15% gains. On Friday it climbed to a fresh record high of 119,593 points.
This has been notable for the absence of foreign investors. Central bank President Roberto Campos Neto on Friday said this was not a sign they had a gloomy view on Brazil, but suggested they might see greater value in other markets right now.
BAML’s figures indicate they are dipping their toes back in again, with Brazilian funds attracting $274 million inflows from abroad last week, the sixth straight week of inflows.
Reporting by Jamie McGeever; editing by Jonathan Oatis