A game of two halves is predicted for Brazilian equity, which started 2010 on shaky ground. New issuance is scheduled for the first half, but volatility will follow.
After a 2009 of bountiful returns in Brazilian equity markets that stoked interest from new investors, bankers see a strong deal pipeline that should keep markets well-fed in the first half of 2010. With elections looming and rates trending higher after June, the flow will run dry. Pessimists say valuations are already stretched and the murky global scenario spells trouble for the economy, pointing to Januarys poor performance.
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