Brazil’s stock market achieves ‘record close’
Brazil’s stock market achieved its strongest close since March 2000 on Wednesday, according to new reports.
The Bovespa index of the Sao Paulo Stock Exchange increased by 1.4 per cent to 65,317.7 points and has gained over 46 per cent so far this year, indicating that Brazil’s economy is strengthening despite the current instability in the US lending markets.
Tony Volpon, chief economist at Sao Paulo-based brokerage CM Capital Markets, told Bloomberg: "We are seeing heavy foreign-investor buying in initial public offerings (IPOs).
"There are more IPOs coming. That will bring capital flows into the country, supporting the currency."
Brazilian newspaper, Estado de S. Paulo, reported this week that foreign investors have purchased 40 billion reais (£11 billion), around 74 per cent, worth of the shares offered in IPOs on the Sao Paulo Stock Exchange this year – double the amount of foreign purchases in 2006.
There was more good news for the Brazilian economy this week as FIFA announced the country has been successful in its bid to host the 2014 World Cup.
Hosting the event will bring an influx of tourists into the Latin American country, creating more trade for the tourist and aviation industries.
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