HSBC: Brazil’s Bovespa will rise 32%
Banking giant HSBC has said that it is possible for Brazil’s Bovespa stock index to gain 32 per cent over the next 12 months as profits in the country rise.
According to Pedro Bastos, the chief executive of HSBC Investments in Brazil, and Mario Sergio Felisberto, the company’s chief investment strategist, the country’s stock exchange may extend its rally to a sixth year, reports Bloomberg.
Mr Felisberto told the publication: "The effect that the slowdown in the US economy is generating in profits globally is marginal.
"Unless we have a strong deterioration in the market, and there’s no sign of that right now, we will still see growing profits."
Earlier this month Brazilian shares were reported to be "soaring" due to a "broad rise" in the economy, making the Latin American country a "gift" for US investors looking for a more stable market to invest in.
The Brazilian economy has also received a boost from a discovery made last week of an oil field which is estimated to hold up to 40 per cent of the country’s oil reserves.
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