The stock exchanges duel: Brazilian Bovespa versus New York Stock Exchange

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.

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About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil.
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3 Responses to The stock exchanges duel: Brazilian Bovespa versus New York Stock Exchange

  1. AM says:

    This is very interesting. Do you have any charts of the volume of trading on the Bovespa compared with NYSE Brazilian ADRs over the last few decades?

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  2. Hildete Vodopives says:

    No, I don’t have them. My guess is that consistent data should go back not more then 12 years. It would be best to compare from 2000 on, because you have more companies listed as ADRs. Before that, I don’t believe we had many. If you are interested, the consulting firm Economatica might be in a position to help.

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  3. Joel Barsky says:

    Hi, very interesting article and comparison. Do you have a list of all the Brazilian companies that are traded on the NYSE?

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