5/11/2011

Investors Bet On Latin America

The region recognizes the biggest capital inflow worldwide. United States and China are the biggest Investors.

Latin America recorded last year the largest increase in foreign direct investments (FDI). Roughly USD 113 million flowed in the area, an increase of 40 percent compared to the previous year 2009. The figures show that Latin America as well as the Caribbean getting more and more integrated within the world economy. Biggest gainers are Brazil, Mexico and Chile. In total, these countries could recognize a capital inflow in an amount of USD 81.3 billion.

Brazil: 48.5 billion (+87 percent)
Mexico: 17.7 billion (+17 percent)
Chile: 15.1 billion (+17 percent)
Peru: 7.3 billion (+31 percent)
Columbia: 6.7 billion (-5 percent)
Source: Comisión Económica para América Latina (CEPAL)

Here is a list of the best yielding American Depositary Receipts (ADRs) of Latin America:
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(Click on the table to zoom)


The average P/E ratio of the best yielding Latin America stocks is 16.21 while the average dividend yield amounts to 7.17 percent. Price to book ratio is 4.51 and price to sales ratio 3.31.

Capital flows into South America were mainly invested in mining and agriculture. In Mexico and Central America, investments into the manufacturing sector dominating the capital allocation. The countries of South America have high occurrences of precious metals and large areas of low cost agricultural fields which were leased by China and Asian countries in order to satisfy their commodity needs. The north of Latin America is benefitting from free trade arrangements with the United States. Core investors are USA (17 percent of all FDI), China (9 percent of FDI), Canada and Spain (each 4 percent).

Related stock ticker symbols:
BCA, TSP, BFR, VIV, YPF, PVD, TEO, APSA, BMA, CIG, TBH, CPL, TMX, SID, BLX, AKO-A, RC, ASR, BCH

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1 comment:

  1. Anonymous6/16/2011

    I am long WMT Mexico.

    ReplyDelete

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