Brazil shrs seen opening firm but jumpy throughout|
Reuters, Wednesday, September 02, 1998 at 09:34
SAO PAULO, Sept 2 (Reuters) - Brazilian stocks are poised
to open firmer on Wednesday as a calmer external outlook and
improving world markets buoy optimism in local bourses, but
traders may still be jumpy, depending on New York's
The 58-share Bovespa index (INDEX:$BVSP.X), which posted a handsome
6.87-percent gain on Tuesday to close at 6,917 points, is seen
holding on to its highs at least at the start, brokers said.
"It will open firmer, but prices will still depend heavily
on Wall Street throughout the session," said one trader at
Banco Santander in Sao Paulo. The index was still down 32
percent so far this year by Tuesday's close.
Some brokers said Tuesday's rise was in part due to
foreigners returning to the market, snapping up some cheap
The market's top blue-chip issue Telebras preferred
(SAO:TELB4), which is often sought after by foreigners as well
as local investors, jumped 6.71 percent to 89.1 reais.
Brokers said news on Telebras late Tuesday that 12 new
firms spun off recently from the telephone holding company
Telebras would start trading from September 15, should help
activity in the market.
The 12 firms were created prior to Telebras' privatization
auction held on July 29.
Investors had been awaiting the units' debut on the local
bourse and New York Stock Exchange.
"Starting trade in the companies would help the market
because it prevents a concentration in Telebras, and gives
investors a wider selection of shares," said a trader at local
Indusval brokerage. Telebras currently accounts for about 50
percent of trade on the Sao Paulo bourse.
Investors are now expected to hunt down other blue-chips
such as Petrobras (SAO:PETR4), Eletrobras (SAO:ELET6), Telesp
(SAO:TLSP4) and Cemig (SAO:CMIG4), the trader said.
Bluechip activity Tuesday:
Telebras (SAO:TELB4) up 6.71 pct at 89.10 reais
Petrobras (SAO:PETR4) up 10 pct at 132 reais
Eletrobras (SAO:ELET6) up 16.61 pct at 20.99 reais
Vale do Rio Doce (SAO:VALE5) up 4.49 pct at 16.30 reais
* Tuesday: up 6.87 pct at 6,917 points
* Week: up 2.5 pct
* Month: up 6.8 pct
* Year-to-date: down 32.1 pct
SELIC (open): 2.085 pct
Dollar/Real (open): 1.1775 per dollar
YESTERDAY'S STORIES 1/8 1/4SUR 3/8
SPOT REAL QUOTES <BRBY>
BOVESPA STOCK INDEX (INDEX:$BVSP.X)
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