Advansa International follows exchange rates and stock market indexes for several emerging and frontier markets. Exchange rates and stock indexes are recorded on the last trading day of the week. The tables below show changes from the last trading day of the last full week of the quarter for several key markets in Latin America, and the Caribbean.
Table 1
STOCK MARKET INDEX TRACKER – 3RD QUARTER 2014 LATIN AMERICA/CARIBBEAN |
|
COUNTRY |
3RD QUARTER PCT CHANGE |
ARGENTINA MERVAL-Local Currency |
62.64% |
ARGENTINA MERVAL-US$ |
59.06% |
BRAZIL BOVESPA-Local Currency |
7.63% |
BRAZIL BOVESPA-US$ |
-2.07% |
COLUMBIA IGBC-Local Currency |
-2.76% |
COLUMBIA IGBC-US$ |
-9.96% |
JAMAICA MAIN INDEX-Local Currency |
3.44% |
JAMAICA MAIN INDEX-US$ |
2.74% |
MEXICO-Local Currency |
4.71% |
MEXICO-US$ |
1.33% |
MSCI LATIN AMERICA-Local Currency |
5.29% |
MSCI LATIN AMERICA-US$ |
-2.62% |
MSCI EMERGING MARKETS-Local Currency |
1.44% |
MSCI EMERGING MARKETS-US$ |
-2.13% |
Sources: Stock exchange websites, Financial Times, Advansa International data |
Table 2
3RD QUARTER 2014 EXCHANGE RATE CHANGE LATIN AMERICA/CARIBBEAN |
||
COUNTRY |
3RD QTR PCT CHG |
YTD SEP PCT CHANGE |
ARGENTINA |
-3.57% |
-22.99% |
BRAZIL |
9.70% |
-3.27% |
CHILE |
-8.30% |
-12.69% |
COLOMBIA |
-7.20% |
-5.31% |
COSTA RICA |
1.30% |
-6.98% |
JAMAICA |
-0.69% |
-5.82% |
MEXICO |
-3.38% |
-2.95% |
PERU |
-3.24% |
-3.87% |
TRINIDAD & TOBAGO |
1.19% |
-0.81% |
Sources: Financial Times, Advansa International data |
Emerging and frontier market stocks showed mixed results as the MSCI Emerging Markets Index rose 1.44%, Latin American stocks however mostly outperformed the broader emerging markets. The MSCI Latin America Index was up 5.29%. Argentina is obviously an outlier. One school of thought says that in Argentina investors are shifting to equities and away from fixed income which has driven the stock market to an unusually high level.
On Currency front, the US Dollar index rose from 99.316 in Q2 to 100.342 in Q3. The recent strength of the US dollar makes the region’s currencies appear weaker than they actually are. Still the real rose nearly 10% as Brazilian authorities raised interest rates.