Brazil Equity Outdoes Other EM

The Ibovespa and the MSCI Brazil have outperformed their peer indices in the last twelve months, according to Itau. Since the end of March 2007, the Ibovespa has risen some 44%, beating the Hang Seng in Hong Kong, which is up some 25%, and Mexico’s Bolsa, which is ahead just 7% in the period. The Brazil MSCI index is among the strongest outperformers in its category, rising close to 70% while the next closest competitor, the MSCI India, is up almost 30%, with Mexico lagging far behind, at under 10%. Within Brazil and EM, the strongest sector is by far the energy sector, according to the MSCI EM and MSCI Brazil. In Brazil, energy companies have risen 130% in the period, while the next biggest gainers are utilities and financials, with a distant 40% rise.