March 1, 2006
The São Paulo Stock Exchange is hot these days.
The São Paulo Stock Exchange, Latin America's largest, has hit a series of record highs in early 2006 as foreign investors continue to pour cash into both it and Brazilian debt markets. The inflows are arriving in spite of political woes that have plagued government officials since July amid a congressional inquiry into alleged bribes paid to lawmakers with public funds.
In 2005, Brazil's key Ibovespa stock index rose nearly 28%, ending the year at a record 33,455 points. Average daily trading volumes were up 32% to $711 million, with foreign investors responsible for a third of all the trades in the market. Foreig
Fresh capital is flowing into Brazilian markets as they become increasingly transparent and sophisticated, and as more local companies go public.