Bloomberg News

BM&FBovespa Profit Increases on Record Trading Volume

May 11, 2012

(Corrects BM&FBovespa earnings estimates in the second paragraph of story published on May 10.)

BM&FBovespa SA (BVMF3), the operator of Latin America’s biggest securities exchange, reported an increase in its first-quarter profit as higher trading volumes boosted revenue.

Adjusted net income rose to 409.2 million reais ($209.5 million), from 384.2 million reais a year earlier, according to a regulatory filing. Analysts had expected the company to post adjusted net income of 410.7 million reais in the first three months of 2012, according to the average of seven estimates compiled by Bloomberg.

Average daily trading volume in stocks rose 6.3 percent to a record 7.2 billion reais in the first quarter as the European Central Bank increased lending to ease the sovereign debt crisis, helping drive investors into riskier emerging-market assets including Brazilian equities. Total revenue was 502.8 million reais, compared with 472.2 million reais a year earlier, according to the filing.

“The decision by the European Central Bank to make long- term loans on extremely generous terms available to banks in the region stirred up the global markets in the first quarter and, in turn, boosted the volumes of stock market operations,” Fator Corretora analysts including Jacqueline Lison wrote in a note to clients before earnings were released.

The ECB lent banks 529.5 billion euros ($685 billion) in the first quarter, helping to ease concern that the region’s debt crisis could affect the financial system.

The Bovespa index, Brazil’s benchmark equity gauge, jumped 14 percent in the first quarter, the best start to a year since 1999, as interest-rate cuts in Brazil, signs of a stronger recovery in the U.S. and renewed optimism about the outlook for Europe lifted stocks.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net Fabiola Moura in Sao Paulo at fdemoura@bloomberg.net

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


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