Novo Mercado (New Market) shows the way abroad
Valor Econômico 11/07/2007
Who would imagine it, but the Brazilian stock market is showing the way. Last week, the Shanghai Stock Exchange announced it will launch a Corporate Governance Index in 2008. One month ago, the main Turkish stock market, the Istanbul Stock Exchange, created a similar index. In both cases, the inspiration was the Novo Mercado (NM - New Market) of the São Paulo Stock Exchange (Bovespa). In the race for profitability, the emerging markets are drawing the attention of the global investors. Among such markets, the Brazilian one, once a kind of an "ugly duckling" of the capitalist world, has taken a good position by creating a reliable segment for companies that respect the rights of the investors, especially those of minority investors. The results show. From January to October, foreigners poured R$ 326.9 billion (US$ 187.9 billion) in the São Paulo Stock Exchange. In the same period, they sold a little more than that - R$ 328.9 billion (US$ 189 billion) -, but, here, what matters is the flow. In 1994, they invested only R$ 12.6 billion (US$ 7.24 billion). If 13 years ago they held 21.4% of the investments, this share is greater today - 35.5%.