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Brazilian companies lose half market value amid financial crisis

(Xinhua)
Updated: 2008-10-28 13:45

RIO DE JANEIRO -- The Brazilian companies listed in the Sao Paulo Stock Exchange (Bovespa) have lost nearly half of their market value since the beginning of this year, according to a study released by the consulting company Economatica Monday.

At the end of 2007, 330 companies listed in the Bovespa were worth $933 billion (based on Monday's exchange rates). However, last Friday, their value has dropped by 49.7 percent, amounting to $468 billion.

The construction sector, including 30 companies, is the hardest hit, losing 72.3 percent of its value in less than ten months. At the end of 2007, the construction companies' value reached $23.6 billion. Last Friday, their value was $6.53 billion.

The paper sector lost 67.7 percent of its market value in the same period.

The largest loss of nominal value was registered in the oil and gas sector, which, along with the insurance and finance sector, and the mining sector, lost a total of $273.3 billion, accounting for 58.9 percent of the total losses in the period.

The less affected companies among those listed in the Bovespa are the telecoms, which lost 23.5 percent of its market value from January to October.