Brazil shrs seen drifting lower on global mkt woes
Reuters, Friday, August 21, 1998 at 09:23
SAO PAULO, Aug 21 (Reuters) - Brazilian shares are seen
drifting lower on Friday with a gloomy outlook for global
markets pounding on the blue-chip Bovespa (INDEX:$BVSP.X) index,
brokers said.
The Bovespa posted the biggest decline in four months
plunging 6.43 percent to 7,991 points on Thursday.
"Prices may firm a bit at the open as they ended at very
low levels Thursday, but the problems that haunted us yesterday
are still ongoing," one Corretora Doria & Atherino broker said.
Brazilian equities have been battered by emerging market woes
fueled by speculation of a currency devaluation in Venezuela.
Local shares suffered another blow late on Thursday on
general unease following U.S. missile attacks in Afghanistan
and Sudan, brokers said. "The mood in Sao Paulo may be defined
by performance on Wall Street today if it gets nasty there,"
the broker said.
The market's benchmark Telebras preferred (SAO:TELB4), which
plunged 7.2 percent on Thursday to 100.50 reais, was seen
testing its next technical support at around 95 reais.
Telebras' ADR (NYSE:TBR) was trading down at 81-1/2 in its
pre-opening session compared to its Thursday's close of
86-2/16.
In Brazil's currency market, the real opened down 0.04
percent at 1.1745 to the dollar. Forex dealers said it was
still difficult to gauge overall sentiment, although
nervousness from overseas persisted.
In the debt market, Brazil's dollar-denominated C-bonds were
down 2.375 points at 57.125 at 0950 local/1250 gmt. The papers
are widely considered an emerging market benchmark due to its
liquidity.
Copyright 1998, Reuters News Service |
