Move over China: Brazil is largest emerging market
Enviado: 28 Fev 2008, 15:51
By Carla Mozee, MarketWatch
Last update: 7:11 p.m. EST Feb. 27, 2008
SAN FRANCISCO (MarketWatch) -- Brazil has moved into pole position among emerging equity markets.
The country is the new home to the world's largest emerging market as measured by a leading index, and the bulk of the heavy lifting comes from state-run oil giant Petroleo Brasileiro, or Petrobras (PBR:petroleo brasileiro sa petro sponsored PBR 124.14, -0.87, -0.7%) , according to a report released Wednesday by Citigroup.
"The recent rise in Petrobras ... has been key to the surge in Brazil's overall weight," said Citigroup analysts Geoffrey Dennis and Jason Press in the report.
The bounce back on the Bovespa, Brazil's benchmark stock index, over the past month has now erased the index's losses in January. The losses were brought on by turbulence in global markets as a result of the painful credit crunch and the slowdown in economic growth, among a host of other financial uncertainties.
Bovespa's recent gains have been enough to outperform the MSCI Global Emerging Market index and bring Brazil's weighting to 14.95% of the index. That surpasses China's weight of 14.15% and Korea's contribution of 13.69%.
In 2002, Brazil accounted for just 5.3% of the index. The MSCI Global Emerging Market index is a market capitalization-weighted index of more than 850 stocks traded in 22 world markets.
Rounding out the top 10 emerging markets by weight are Taiwan, Russia, India, South Africa, Mexico, Malaysia, and Israel.
Brazil is also now the 10th largest market in the world, as measured by the MSCI All Country World index, with a free float market capitalization of $509.1 billion.
The U.S. market is the largest, coming in with a free float market cap of $12.57 trillion.
Brazil's position as the top emerging market isn't guaranteed to last since market caps ebb and flow, which is why one analyst said investors should included factors such as economic fundamentals and regulatory issues as part of an evaluation of potential investments...
...to be continue
Last update: 7:11 p.m. EST Feb. 27, 2008
SAN FRANCISCO (MarketWatch) -- Brazil has moved into pole position among emerging equity markets.
The country is the new home to the world's largest emerging market as measured by a leading index, and the bulk of the heavy lifting comes from state-run oil giant Petroleo Brasileiro, or Petrobras (PBR:petroleo brasileiro sa petro sponsored PBR 124.14, -0.87, -0.7%) , according to a report released Wednesday by Citigroup.
"The recent rise in Petrobras ... has been key to the surge in Brazil's overall weight," said Citigroup analysts Geoffrey Dennis and Jason Press in the report.
The bounce back on the Bovespa, Brazil's benchmark stock index, over the past month has now erased the index's losses in January. The losses were brought on by turbulence in global markets as a result of the painful credit crunch and the slowdown in economic growth, among a host of other financial uncertainties.
Bovespa's recent gains have been enough to outperform the MSCI Global Emerging Market index and bring Brazil's weighting to 14.95% of the index. That surpasses China's weight of 14.15% and Korea's contribution of 13.69%.
In 2002, Brazil accounted for just 5.3% of the index. The MSCI Global Emerging Market index is a market capitalization-weighted index of more than 850 stocks traded in 22 world markets.
Rounding out the top 10 emerging markets by weight are Taiwan, Russia, India, South Africa, Mexico, Malaysia, and Israel.
Brazil is also now the 10th largest market in the world, as measured by the MSCI All Country World index, with a free float market capitalization of $509.1 billion.
The U.S. market is the largest, coming in with a free float market cap of $12.57 trillion.
Brazil's position as the top emerging market isn't guaranteed to last since market caps ebb and flow, which is why one analyst said investors should included factors such as economic fundamentals and regulatory issues as part of an evaluation of potential investments...
...to be continue
