Brazil's main stock market, Ibovespa ended an exceptional 2007 with a turnover of 570 billion US dollars and its biggest annual gain in four years, over 40%. The Sao Paulo stock exchange closed Friday at 63.774 points, accumulating 43.4% gain over the closing of 44.473 points a year ago.
Cia. Vale do Rio Doce, the world's biggest iron ore and nickel miner, and Petrobras, the government controlled oil company, paced this year's advance ranging between 150% and 90%. However the stock index is likely to increase less next year because of slowing growth in the United States, Brazil's largest trading partner, according to strategists at Citigroup Inc., Credit Suisse, Morgan Stanley and Merrill Lynch. But UBS Pactual and Spinelli forecast a 33% advance next year to 85.000 points, based on Brazil's economy growth of 5%, low inflation, strong local currency and the awarding of "investment grade" to the country's sovereign debt. The overall turnover of Bovespa in 2007 was above the trillion Reales, equivalent to 570 billion US dollars, compared to the 530 billion Reales of 2006, up 92%, according to Economatica, a Sao Paulo financial investment advisor. The three shares with the largest turnover were Petrobras (13.8% of total business); Vale do Rio Doce, 11.4% and Bradesco bank, 3.3%. Ibovespa's 20 main shares in 2007 represented 60% of all operations totaling 596 billion Reales, greater than the whole of 2006. For investors operating in US dollars this year's advance in Brazilian stocks was magnified by the more than 21% currency gain against the dollar. Performance in other Latinamerican stock exchanges was more modest: Argentina's Merval index had its smallest annual gain in six years. Chile's IPSA index slipped, paring its fifth straight yearly increase to 13%. In Colombia, the IGBC index was little changed and had its first annual decline in six years. Peru's Lima General Index gained 36% in 2007, its sixth straight annual gain.