After three years of subdued performance, there are once again signs of life for Emerging Market equities, including Brazil. By the end of 2015, the main Brazilian stock market, the Bovespa, had seen five years of annual negative performance – the longest in dollar terms since 1983 – as the index became a lightning rod for myriad economic and political stress factors in the country, including impeachment, recession and downward pressure in global commodity prices. By the middle of last year, the index was ranked as one of the most volatile in the world. However by the end of 2016, the Bovespa followed broader emerging assets in dialling back their negative streaks, closing out the year as the third best global equity market performer, with an 80% year on year uptick in dollar terms (+39% in local currency terms). The MSCI Brazil Index also rose 66.6% in value (BRL). |
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