Localiza Rent a Car S.A. (RENT3) Dips -0.84% on Feb 15

February 15, 2018 - By Hazel Jackson

Shares of Localiza Rent a Car S.A. (BVMF:RENT3) last traded at 24.78, representing a move of -0.84%, or -0.21 per share, on volume of 1.34M shares. After opening the trading day at 25, shares of Localiza Rent a Car S.A. traded in a close range. Localiza Rent a Car S.A. currently has a total float of 660.21M shares and on average sees 2.32M shares exchange hands each day. The stock now has a 52-week low of 11.87 and high of 26.14.

Ibovespa: A Witness to Brazilian Economy’s Success

Unknown to the knowledge of many, Brazil is one of today’s fastest-growing economies and the reason behind it is a successfully emerging trade and commerce industry. Needless to say, it is a true pride of the South American economy. Brazil gives chances to a lot of big companies as Localiza Rent a Car S.A. to receive new clients.

Brazilian Mercantile and Futures (BM&F) Bovespa

The BM&F Bovespa is the main stock exchange in Brazil. Founded on August 23, 1890 as a public entity, it had long been under the strict supervision of the government. By the late 1960s, the government had loosened its grip on the BM&F Bovespa.

In 1972, electronic trading had finally been implemented to make things easier for brokers and investors alike. By the end of the decade, the Sistema Privado de Operacões por Telefone (SPOT) or the Private System of Telephone Trading, a telephone trading system, had been introduced.

The Mega Bolsa, an electronic trading system, had replaced the old one in 1997. Two years later, the Home Broker, an internet-based trading system that enabled individual investors to trade from home online, had been launched.

The BM&F Bovespa had finally been privatized as a profit entity in 2007. It officially became the BM&F Bovespa when the BM&F Exchange and the Bovespa had merged on May 8, 2008 to create a bigger and consolidated stock exchange in Brazil. Localiza Rent a Car S.A. became one of the active participants of the trading system.

On August 17, 2011, the BM&F Bovespa had recorded its largest daily trading volume of $14.80 billion. On June 18, 2012, it had become one of the founding members of the Sustainable Stock Exchange initiative of the United Nations (UN). As of December 2015, more than 450 companies are listed on the BM&F Bovespa.

Ibovespa Brasil Sao Paulo Stock Exchange Index

The Ibovespa is the benchmark index in Brazil that weighs the top 50 companies listed on the BM&F Bovespa as a market-capitalization-weighted index.

Consequently, it represents roughly 70% of the total market capitalization on the BM&F Bovespa. Founded in 1968, it is also the oldest index measuring BM&F Bovespa companies.

Rebalancing of the Ibovespa happens quarterly to ensure its efficient representation of the trade and commerce environment in Brazil. In order for a company to become eligible for inclusion as an Ibovespa component, it must have been listed and traded on the BM&F Bovespa for not less than a calendar year prior to a particular rebalancing period. Also, more than 80% of its shares must be traded on the BM&F Bovespa to guarantee compelling activity.

The Ibovespa uses a base value of 100 points, which has a base date of January 2, 1968.

The Ibovespa had hit its all-time low of 0 in January 1972. On May 20, 2008, it had hit its all-time high of 73,516 points, which was primarily driven by a positive inflation outlook that caused major industries to surge. Nine days later, the Ibovespa had an intraday high of 73,920 points.

Investors must take advantage of the growth of the South American economy by investing on BM&F Bovespa stocks, especially if they are looking for meaningful long-term returns. Investors turn their attention to the Localiza Rent a Car S.A. equities.

More notable recent Localiza Rent a Car S.A. (BVMF:RENT3) news were published by: Reuters.com which released: “Brazil’s Localiza posts record profit as fleet grows” on July 21, 2017, also Prnewswire.com with their article: “Deloitte Corporate Finance LLC Advises The Hertz Corporation in Corporate …” published on November 27, 2017, Marketwatch.com published: “Localiza Rent A Car S/A ADR” on July 11, 2017. More interesting news about Localiza Rent a Car S.A. (BVMF:RENT3) were released by: Businesswire.com and their article: “Fitch: No Impact on Localiza’s Ratings from Hertz Brazil Acquisition” published on December 06, 2016 as well as Reuters.com‘s news article titled: “Brazil car rental firm Locamerica shares rise on Unidas deal” with publication date: December 28, 2017.

Localiza Rent a Car S.A. engages in car rental and fleet management activities. The company has market cap of $16.36 billion. It is also involved in fleet rental and franchising activities; and selling used cars. It has a 34.51 P/E ratio. It operates a fleet of 115,166 cars in 565 locations in the cities and airports in Brazil, Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay.

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