In a report commissioned by research firm, Dealogic, Brazil has experienced an increased inflow of equities in 2010. As such, mergers and acquisitions have been at the fore front with investors putting huge capital into long term investments in the country than ever before, said Dealogic. In its release today, Dealogic established that deals announced this year to date total about $65.4 billion, terming it the highest ever recorded figure and as well double last year’s figure over the same time.

Dealogic tracks mergers and acquisitions as well as other markets. According to the firm, during the same period in 2009, Brazilian deals totalled about $32.9 billion, signalling that 2010 has witnessed an increase in M&A activity. In its findings, Dealogic said that cross-border mergers and acquisitions totalled $40.8 billion from the beginning of 2010 to date, an impressive increase when compared to 2009’s cross border M&A that totalled $5.1 billion.

In that regard, 2010’s figures were boosted by direct foreign investment deals such as Telefonica’s offer for Portugal Telecom’s 50% stake in their joint venture, Vivo, at an investment of $9.6 billion. Thus, Dealogic reported that the Brazilian telecoms sector has been the recipient of most of the cross-border M&A deals with the sectors total figure standing at $17.7 billion for 2010 to date. Second to the Telecoms industry, the Chemicals sector was also targeted, receiving about $13.9 billion of the total cross-border M&As into Brazil. The two sectors were followed by the metals and steel industry that together collected about $6.9 billion.

However, even with the impressive M&A figures, Brazil’s portfolio flows have all the same kept a sluggish performance. When compared with other emerging nations such as Russia, India amongst others, Brazil’s portfolio slugged as the others made impressive gains. Analysts explain the situation with regard to Brazil’s impressive resilience during the global financial meltdown when most of its portfolio withstood the market turbulence. As the other nations regain their performances from the crisis, Brazil’s seems to be remaining behind, said analysts.

In 2009, Brazilian equities attracted more money but prices are currently looking shaky to some equities. But regardless of the portfolio volatility in Brazil, investors are still confident in the country’s growth potential. Thus, whereas the Brazilian M&A markets look poised to perform better even in the future, the country’s equities are expected to sustain their volatility for some time to come.