Brazil shrs jump 3.69 pct on fiscal plan optimism
Reuters, Wednesday, October 28, 1998 at 11:39
SAO PAULO, Oct 28 (Reuters) - Brazilian shares jumped 3.69
percent in afternoon trade on Wednesday on optimism over the
fiscal plan outlined by the government, traders said, which is
expected to pave the way for an international loan.
"The package was quite strong and points the government in
the right direction," a trader at Unibanco in Sao Paulo said.
"The second part, the international support, could come soon."
Sao Paulo's key Bovespa (INDEX:$BVSP.X) index surged to 7,122
points, also boosted by government intervention in the market,
traders said. "The government wants Brazil to look good today,"
one trader said.
Finance Minister Pedro Malan presented the details of the
three-year plan Wednesday morning. The government hopes to save
and raise 28 billion reais in the first year in a bid to rein
in the bloated budget deficit.
"The plan didn't disappoint, though it didn't surprise
either," the Unibanco trader said. "But as a whole, it's
solid."
Petrobras preferred (SAO:PETR4) led gainers with a rise of
over 11 percent, in part on relief that an import tax on oil
and gas was not included in the fiscal measures, traders said.
Copyright 1998, Reuters News Service |
