By the late 1990ths early 2000ths, one of the top concerns in Brazilian capital markets circles was if the local stock exchange, Bovespa, would be able to compete with its international peers. Forecasts were quite pessimists.
Brazilian companies looking for liquidity could not neglect the fact that the international investor was trading in New York, not in São Paulo. So for companies wanting to enhance international exposure, it was imperative to list as an ADR in the New York Stock Exchange.
Today, this picture seems to have changed. Negotiations in Brazil topped the ADRs and projections for 2011 IPOs also favor Brazil, according to Nathan Vardi on Forbes this week.
ADRs in 2010
For the first time in the last four years, the financial volume of the Brazilian Stock Exchange (Bovespa) exceeds the American Depositary Receipts (ADRs) of Brazilian stocks. ADRs are traded in New York Stock Exchange (NYSE).
According to the survey by the Brazilian consulting firm Economatica released by Cias Brasil Agency, 33 Brazilian ADRs had annual average daily volume of $ 3.01 billion, while stocks of the same companies in Bovespa reached a record U.S. $ 3,211 billion. the second largest in histor just below the 2008 value U.S. $ 3.551 billion.