Tag Archives: Stock Market

The Rise of the “B” In the BRIC– Brazil Economy

Brazil as a country is known for having one of the best growing economies all over the world. Despite the reality of the world economic meltdown, the nation has continued to wax stronger economically. The Brazilian stock market has continued to impress many of the investors. A good number of local and foreign investors have actually built wealth by investing in the nation’s stock market.

economy and brazil stock market

Brazil Stock Market and Economy

Actually, Brazil ranks as the 5th largest country in the world when viewed through the lens of geographical area. It also ranks as the 6th largest economy in the world. The nation is also endowed with lots of natural resources. It has ever growing gas and oil reserves. It’s also the world’s largest producer of coffee, tropical fruit and sugarcane. The nation is also known for having several manufacturing companies in vital areas such as steel, computers, automobiles, petrochemical, aircrafts and durable consumer products. These account for over 31% of the nation’s GDP. The remaining 71% hinges on the insurance, banking, retailing, healthcare and other sectors.

Most of the major companies constitute the bulk of what is known as the Brazil stock market. A good number of them have their shares sold to the public. This accounts for the ever growing economy of the great nation. Brazilians and even foreign investors see the nation’s stock market as a viable ground for profitable investment. You can invest with any amount and still make lots of profits in the long run.

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Indian movies in brazil

During the global economic crunch of 2008, the Brazilian stock market was also affected. Despite this, the nation’s economic remained solid during the period. It suffered minor setbacks and still bounced back after sometime. The Brazilian government came up with aggressive economic measures that made the nations economic stronger. The government raided the interest rates and also engaged economic experts who actually helped in sustaining the nation’s economy.

Meanwhile, the Brazilian stock market went down on the profit scale when the government tightened measures in 2010 to slow down the overheated economy. This actually affected most of the companies. However, when the government’s measures were relaxed in 2011, the stock market picked up. This made the nation’s economy to surpass that of the United Kingdom in 2011.

Over the years, several companies in Brazil have been doing well in the world stock market. Among the major companies include:

· Embraer, the Aircraft maker with a market value of $4.76 billion

· Petrobras, the oil giant with a market value of $173 billion

· CPFL Energia S.A, the power provider with a market value of $12 billion

· Companhia Siderurgica Nacional with a market value of $14 billion

There are many other companies with profitable shares. They have been driving the Brazilian economic to greater heights. Investing in any of the stocks is indeed a viable gateway to riches. You simply build wealth within some months or years!

Brazil top Retail stocks Listing of companies

Below a table of some of the top 20 largest companies in Brazil by sales in no particular order and also listing by some sectors . The list from Business and Economy Brazilian magazine was published featuring a list of the largest corporations operating in Brazil (financial companies, like banks, were not included) in 2003.

retail sector in brazil and company list

Even though Brazil has the fifth largest population in the world, Brazilian retailing is not correspondingly dominant in the global rankings, More than 50% of Brazil’s retail consuming is for food.

1 Petrobras ( petroleum and energy)

Petrobras drills wells and refines petroleum. BR Distribuidora sells the products (gasoline, diesel, etc) to the wholesalers (Shell, Esso, etc) which eventually sell to the gas stations.

2 BR Distribuidora ( Wholesale (fuel))

3 Telemar (Telecommunications)

4 Telefonica (Telecommunications)

5 Ambev ( Beer and drinks)

6 Ipiranga

7 Volkswagen

8 Shell

9 General Motors

10 Brasil Telecom ( Telecommunications)

11 Bunge Food (Food and Drink)

14 Carrefour ( Retailer)

12 Pão de Açucar ( Retailer)

19 Cargill

33 Casas Bahia ( Retailer)

Brazil is growing so quickly in recent years that signs of inflation have begun to pop up in its economy, which has forced the country’s Central Bank to out on the brakes and take measures to raise interest rates. The Brazilian index has presented an opportunity for those bold enough to buy when prices and valuations are a bit depressed with markets running a bit weaker that it should be.

shops in brazil

In brazil In 2011 retailing experienced a slight slowdown in growth and economy compared with the strong performance recorded in 2010. For “brazil 2012” was a bit faster paced though finance markets were a bit subdued. Wikipedia holds extensive list of companies in brazil

Some Heavy Hitters in the brazil stock market

Ultrapar Holdings, Inc. (UGP) distributes liquefied petroleum gas and lubricants and has a market cap of $8.2 billion.

Gafisa SA (GFA ) is a Brazilian home builder with a market cap of $2.73 billion.

Cosan Ltd. (CZZ) is an agriculture player, producing and selling sugar and ethanol with a market cap of $3.46 billion.

Braskem S.A. (BAK) produces and sells petrochemicals and has a market cap of $9.77 billion.

Investors interested in exchange traded funds focused on Brazil might want to consider the following trades:

ProShares Ultra MSCI Brazil (NYSE: UBR) is almost 40% higher year to date.

Global X Brazil Consumer ETF (NYSE: BRAQ) is more than 20% higher year to date.

iShares MSCI Brazil Index (NYSE: EWZ) is almost 19% higher year to date.

Global X Brazil Mid Cap ETF (NYSE: BRAZ) is almost 18% higher year to date.