Brazil Stocks May Rise 70% by End-2011, JPMorgan Says
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Brazil’s stock market may surge as much as 70 percent to a record by the end of 2011 as low interest rates worldwide and “reasonable” valuations lure investors, according to JPMorgan Chase & Co.
The nation’s benchmark Bovespa Index may climb to 122,000 next year in JPMorgan’s “positive” scenario that assumes “risk-free” interest rates remain low, Ben Laidler, a strategist for the bank, wrote in a report today. The rally may be driven by a pickup in foreign inflows, along with the removal of “overhangs” including the world’s largest share sale by Petroleo Brasileiro SA in September and last month’s presidential election, Laidler wrote.