Brazil a five-star performer
AT the end of last month, Brazil's stock market was the star performer among the emerging markets so far this year.
The Bolsa de Valores de Sao Paulo (BOVESPA) index was up 88.7 per cent in US dollar terms, partly the result of a smooth introduction of a new currency in July which resulted in an appreciation against the US dollar.
It is an extremely volatile market, as might be expected in a nation under the grip of high inflation, and turnover is concentrated in a handful of big firms.
Foreigners are allowed to participate only as institutions and there are about 50 investment funds.
Compared with BOVESPA, the Bombay stock market was up by 34 per cent over the same period, as India's Prime Minister P. V. Narasimha Rao continued to proceed with economic and financial reforms.