September 08, 2016

South American equities markets tick upward following regime change

Depositary receipts country indices for Brazil, Argentina and Chile outperform major market indexes in first half of 2016


Emerging markets in South America topped the BNY Mellon Depositary Receipt (DR) country index charts for the first half of 2016. Brazil (+44.8%), Argentina (+23.0%) and Chile (+20.6%) saw the highest percentage increases from the same period last year. DR indices for South Africa (+19.9%) and Taiwan (+12.8%) also posted double-digit gains.

All five countries’ indices outperformed major market indices at the year’s midpoint. As of June 30, 2016, the S&P 500 was up +3.84%, the Dow Jones Industrial Average had gained +2.9%, while the MSCI EAFE Index was down -4.42%. Companies contributing to the higher DR country index gains included Brazil’s Banco Bradesco (+81.0%), Petrobras (+70.9%) and Itau Unibanco (+49.5%); Argentina’s Nortel Inversora (+92.3%) and Pampa Energia (+33.0%); Chile’s Cencosud (+49.8 %) and Enersis Americas (+36.1 %); and South Africa’s AngloGold Ashanti (+154.4%).

For 20 years, BNY Mellon has been building and maintaining the most comprehensive family of DR indices, tracking all depositary receipts trading on the NYSE, NYSE MKT, NASDAQ, LSE and OTC markets. BNY Mellon ADR Indices span specific strategies, regions, countries, sectors and themes. Currently, there are more than 130 indices covering all ADRs from issuers in over 69 countries. The indices are market capitalization-weighted and calculated on a continuous basis throughout the trading day. The BNY Mellon ADR Index family serves as a benchmark or a referenced index in exchange-traded funds (ETFs) as well as other investment funds such as separately managed accounts.

This article is for informational purposes only. BNY Mellon provides no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities. Depositary Receipts: Not FDIC, State or Federal Agency Insured; May Lose Value; No Bank, State or Federal Agency Guarantee. BNY Mellon provides no advice nor recommendations or endorsement with respect to any company, security or products based on any index licensed by BNY Mellon, and we make no representation regarding the advisability of investing in the same.