Securities Market Size and Scope
By a large margin, the BM&F Bovespa is Latin America’s largest securities market, andwas the tenth-largest in the world measured by total market capitalization at the end of 2010. Unlike in other countries in the region with relatively shallow equity markets, theBovespa is a crucial source of financing for local companies. Even during the turbulence of the financial crisis, the Bovespa has hosted more than 20 initial public offerings since thebeginning of 2009 while equity issuances have dried up across the developed world. TheIPOs launched during the crisis, however, did tend to be of smaller size than those of previous years totaling US$6.32bn in 2010, which is down from US$13.06bn in 2009 and$4.57bn in 2008.
Bradesco5%Itau Unibanco6% Ambev7% Vale (CVRD)10%Petrobras12%
Bovespa Listed Companies, by % Market Cap - Chart 1
Petrobras Vale (CVRD) Ambev Itau UnibancoBradesco Banco do Brasil Santander TelefonicaItau OGX Petroleum Others
Economist Intelligence Unit, Brazil: Country Finance