BM&FBovespa Sales Beat Estimates as Market Plunge Boosts Trading

BM&FBovespa SA (BVMF3), the operator of Latin America’s biggest securities exchange, reported second-quarter sales that beat analysts’ estimates as initial public offerings and market volatility boosted trading volume.

Revenue climbed 11 percent from a year earlier to 599.8 million reais ($262.5 million), the Brazilian exchange said today in a regulatory filing. The average estimate of ten analysts surveyed by Bloomberg was for sales of 597.2 million reais. Profit climbed 17 percent from a year earlier to 350.8 million reais.

Average daily trading volume in stocks increased 8.5 percent to 8.3 billion reais. Brazil has had seven IPOs this year, compared with three in 2012, according to data compiled by Bloomberg. Three-month historical volatility for the country’s Ibovespa stock benchmark peaked at 21.5 percent on June 27, up from 17 percent at the start of the three-month period. The Ibovespa tumbled 16 percent during the quarter.

“There was a lot of news that made trading increase in the second quarter,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil, before the earnings release. “Brazil’s first-quarter growth, announced at the end of May, was a big disappointment for investors, and speculation over the Federal Reserve’s plans for U.S. stimulus for the American economy also helped to boost volume.”

Brazil’s gross domestic product increased 1.9 percent in the three months through March, according to the national bureau of statistics. The median estimate among analysts surveyed by Bloomberg was for an advance of 2.3 percent.

BM&FBovespa’s shares rose 4.1 percent to 12.10 reais today in Sao Paulo before the results were released. They’re still down 14 percent this year.

To contact the reporters on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.