São Paulo – The São Paulo Stock Exchange (Bovespa) has become the world’s second largest exchange in terms of market value. Based on stock prices as of last Thursday (23rd), the holding company that controls the exchange is now worth 30.4 billion Brazilian reals (US$ 17.6 billion), more than the Chicago Stock Exchange, in the United States.
According to Bovespa president Edemir Pinto, only the Hong Kong Stock Exchange, in China, is worth more than the São Paulo Stock Exchange. He also said that the São Paulo exchange is worth 25% more than the New York, Nasdaq and London exchanges combined.
In his address while launching Petrobras’ public share offering, Pinto ascribed the increased value of the stock exchange to the growth of the Brazilian capital market. From 2003 to 2010, annual transactions at the exchange have gone from 200 billion reals (US$ 116 billion) to 2 trillion (US$ 1.1 trillion), the sixth largest volume in the world.
He claimed, however, that there is still room for progress. According to him, by 2014, the number of natural persons who invest in shares should go from 600,000 to 5 million. Over 200 companies should become listed. "We are going keep watch on other companies that are going public, especially in the oil and gas industry."
Edemir Pinto said the process may be sped up even further through new government measures. "This expansion may be accelerated by means of public policies. For example, we may bring down the regulatory costs and taxes for companies that enter our capital market, so as a means of investment incentive."
*Translated by Gabriel Pomerancblum
