Sao Paulo Stock Exchange

Present legislation in Brazil permits the São Paulo Stock Exchange to trade with stocks and securities which have been issued by publicly-held companies. These companies must register with the Brazilian Securities and Exchange Commission. The exchanges are also authorized to trade in stock future contracts, stock call and put options and debentures. There is frequent trading of BOVESPA-listed company stocks, corporate bonds, subscription warrants and fund quotas, stock options and rights and subscription receipts. Also offered for trade are depository receipts of stocks given from Mercosur member country companies.

If we look back to how the stock market in Brazil ended in November 2006 we can see that there was a positive performance for three months in a row. The Bovespa Index or Ibovespa saw a 6.7 % appreciation nominally speaking and 5.6 % in dollar terms. Foreign investors were very active take up 33.32% of the trading volume in November. Institutional investors came in second, making up 28.01%. Individual investors followed on with 25.89 %. The end of the month saw a 7.8% increase in the market capitalization of all of BOVESPA’s listed companies. Top companies listed on the Sao Paulo Stock Exchange include Petrobras (oil and gas); Ipiranga Petróleo (oli and gas); Telemar (telecommunications); Vale do Rio Doce (mining) and AmBev (food and beverages).

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