SAO PAULO, Aug 20 (Reuters) - Foreign investors have pulled20.3 billion reais ($5 billion) from Brazilian stocks so farthis year, B3 SA Bolsa Balcao said in a statement onTuesday, the largest withdrawal since 1996.
Driven by increasing worries over the global economy, theU.S.-China trade war and a financial crisis in neighboringArgentina, the outflow surpassed the 16.5 billion reais that waspulled from Brazilian stocks in the same period in 2008, duringthe global financial crisis.
So far this month, foreign investors have reduced theirstock holdings in Brazil by 9.6 billion reais, the stockexchange said.
These figures would appear to give credence to the viewconsistently held by market participants and analysts this yearthat foreign investors are far less bullish on Brazil thandomestic investors.
The latest available international portfolio flows data fromthe central bank show that in the first six months of the yearinvestors pulled more than a net $2 billion from Brazilianstocks, while investing more than a net $6 billion intoBrazilian fixed-income assets.
Despite the overseas outflow from equities, the benchmarkBovespa index is up 13% this year, as the lowestofficial interest rates on record encourage local andinstitutional investors to diversify out of bonds.
($1 = 4.0350 reais)(Reporting by Paula Laier, Tatiana Bautzer and Jamie McGeeverEditing by Paul Simao)