More reports on: World economy
Brazilian bourse Bovespa becomes world's second largest after Petrobras listing news
27 September 2010

Brazil's Sao Paulo Stock Exchange BM&FBovespa SA has become the world's second-largest stock in market value after the Hong Kong Stock Exchange, Bovespa's president Edemir Pinto said over the weekend.

By Thursday closing, BM&FBovespa reached a market value of 30.4 billion reais ($17.7 billion) to become the world's second-largest stock exchange.

Pinto said that BM&FBovespa's market value is 25 per cent more than the combined market values of the New York, London and Nasdaq stock exchanges.

BM&FBovespa's market value was largely helped by the massive $70-billion share sale of Brazilian state-controlled Petroleo Brasileiro SA, (Petrobras) on 23 September in the world's biggest share sale to give the oil giant the financial muscle to fund its massive $224 billion five-year oil exploration investment plan. (See: Petrobras raises record $70 billion in world's largest share sale) 

According to Brazil's finance minister Guido Mantega, the successful record share sale of Petrobras is evidence of the good state of the Brazilian economy.

"It is the largest share sale in the history of capitalism. In the difficult moment in the world's economy recovery and 10 days before the elections in Brazil, I would say it is an important event," Mantega said.

Shares of BM&FBovespa shot up by 1.4 per cent on 23 September to a record 14.90 reais, pushing the total value of the exchange owner's more than 2 billion shares to over 30 billion reais, according to The Wall Street Journal.

The stock value of BM&FBovespa is only second to the Hong Kong Exchange, which is valued at $19.8 billion, but higher than the CME Group, whose shares are worth around $17.5 billion, according to a Bovespa press release.

Ranking of Market Value (top 10)

Exchange ranking (top 10)
Market cap ($billion)
1 Hong Kong Ex.
19,8 19,8
17,7 17,7
3 Chicago Merc
17,5 17,5
4 Deutsche Boerse
13,0 13,0
5 Intercontinental Exchange
7,5 7,5
6 Nyse
7,4 7,4
7 Sing. Sing. Exc.
7,2 7,2
8 Australia Exchange
5,3 5,3
9 Nasdaq
3,9 3,9
10 FTSE 100 LSE
2,9 2,9

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Brazilian bourse Bovespa becomes world's second largest after Petrobras listing