Macro Fundamentals Are Key

June 2007 | Data Release

The Bovespa stock index has continued its steely performance in recent weeks and is currently trading at 52,049, albeit slightly down from the high of 53,422 achieved on June 1. The country's robust macroeconomic fundamentals, combined with strong economic activity has continued to underpin the performance of the bourse. Furthermore from an investor's perspective the Bovespa's P/E ratio is approximately 11.0x, significantly below the Latin average of 12.4x, implying that it is still relatively cheap. The bourse is on its way to hit our short-term target of 55,000 and will be supported by strong economic data expected over the next

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