Brazil short interest drops to 6.5% as investors cut bear bets
The B3 Ibovespa fell 0.93% but Brazilian stock short interest decreased to 6.5% and open short positions fell to R$ 121 billion.
Brazilian investor bearishness declined despite market declines as the B3 Ibovespa fell 0.93% on September 9 to 185,629 points. According to data from XP Short Scout, short interest in the Ibovespa median index dropped 0.7 percentage points to 6.5%. Open short positions contracted 10.5% to R$ 121 billion as measured through September 4 closing. This reduction occurred after the index advanced roughly 11.3% from August 19's low of 166,336 points to September 4's close of 185,147.15 points. The trend aligns with a Bank of America report published on September 8 that upgraded its Brazil stock recommendation citing improved flows and reduced short positions. However, the decline in bear bets was not uniform across all companies. Stock data from XP highlighted specific names such as Caixa Seguridade (CXSE3), MRV (MRVE3), Magazine Luiza (MGLU3), Hapvida (HAPV3), and Minerva (BEEF3) that experienced significant reductions in short interest relative to free float.
