Brazil has stood out strongly as its stock market recovers in 2023, and the country – Latin America’s largest market – could be on the path to even bigger gains, according to finance and investment specialist CNBC.
The international publication highlighted the critical role of subtle cuts in base interest rates, along with rising corporate profits, as the main drivers of this growth. Furthermore, the greater accessibility of the Brazilian stock market compared to other emerging markets, the reduction of political risk and the approval of tax reform were highlighted.
“Brazilian stocks have suffered in recent years as inflation, combined with fiscal and political uncertainties, has put pressure on sentiment across the country,” the CNBC text read.
2024: Further gains ahead in B3?
Considering that B3’s good performance is expected to continue into 2024, the article provided some investment recommendations for foreign, especially American, investors who wish to have exposure to the Brazilian market next year. The easiest way to invest in Brazilian stocks, as mentioned in the report, is through ETFs – which replicate the performance of market indices composed of these stocks.
Brazilian shares recommended for foreign investors
For those investors looking to gain exposure to specific stocks, CNBC rounds up recommendations from JP Morgan that include Vale stock (VALE3), whose share receipts (ADRs) trade on the NYSE, under the symbol VALE; and directions from Itaú, Localiza (RENT3) and Banco do Brasil (BBAS3), which can be purchased on B3 or in the American over-the-counter market. The three companies mentioned make up EWZ.
Additionally, another investment tip coming from Itaú is shopping center operator Allos (ALOS3), formerly Aliansce Sonae and current member of the FLBR ETF. Daniel Gewehr, head of Brazilian equity strategy at Itaú, highlighted the report’s improvement in mall sales and added that given the violence in cities, shopping in malls is safer for consumers.
Based on all these insights and analysis, foreign investors can have a better perspective on how to direct their investments in Brazilian stocks in 2024.
2024-01-01 01:30:05
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