Comparative analysis of stock exchange markets composing the MILA

Abstract

The following article reviews performance of stock exchange markets members of the Latin American Integrated Market (MILA, Spanish abbreviation) in the period of time 2008 – 2013. The above, in order to explain the effect of integration on market development. Likewise, this article reviews MILA performance, and three markets of America: The United States, Mexico, and Brazil. Then the MILA posture regarding these three markets is established. Public historical information between January 15, 2008 and December 31, 2013, coming from objective sources and recognized by such markets is used. A comparative analysis is made between series of returns from stock exchange indexes corresponding to each market. The above, based on five market performance indexes: growth, sized, liquidity, risk, and market concentration. The main contribution made by this work, is to serve as a tool to understand the MILA, and its impact on its composing markets. In addition, this work contributes to comprehension of studied markets, in order to make an approach to insertion of the Mexican stock exchange into the MILA.