Brazil’s stock index target raised as good performance continues
Brazil’s Bovespa stock index year-end target has been raised by analysts as the country continues to perform well in the current economic climate.
Experts from Credit Suisse said they expected the South American country’s index to hit 67,000 as banks, airlines and Brazilian real estate continue to trade well.
It is also expected that there will be an increase of four per cent in earning expectations on the index.
The firm added that there is a chance that 2010 gross domestic product output could surpass the current projection of growth of five per cent, while it also expected higher oil prices and a better outcome from iron ore pricing negotiations.
Credit Suisse’s forecast shows a further 8.8 per cent gain in the Bovespa, which has already improved by 64 per cent this year thanks to an earnings rebound and demand for commodities.
In the same note to investors, the bank said that it was "turning even more cautious on Mexico" but left its 2009 target price on its local benchmark index unchanged at 30,000 points.
