ADR REPORT - Telebras (NYSE:TBR) stronger after plan
Reuters, Wednesday, October 28, 1998 at 12:02
By Ian Simpson
NEW YORK, Oct. 28 (Reuters) - Brazil's Telebras SA
(NYSE:TELB4) strengthened Wednesday after the Latin American
country unveiled a $23.5 billion austerity package aimed at
shoring up its economy.
Traders said volumes overall were light and investors had
decided Brazil's package, released Wednesday, held little that
markets had not already known.
The package contains tax hikes, spending cuts and other
measures. It is aimed at pulling the world's No. 8 economy back
from the brink of collapse and protect it from financial
turmoil that has ravaged emerging economies worldwide.
The program also will set the stage for a possible $30
billion financial package from the International Monetary Fund
and other lenders.
"The Brazil package turned out to be a non-event," a trader
said.
Jason Myers, with Latin American sales at Paribas, said
approval by Congress was a key concern about the package.
"You have to be a little bit cautious," he said.
Telebras, a bellwether Latin American ADR, was up 1-15/16
to 76-7/16 and was among volume leaders on the New York Stock
Exchange.
Telebras was up along with the overall Brazilian market,
with Sao Paulo's Bovespa index (INDEX:$BVSP.X) rising 3.48 percent.
Brazil's Unibanco Group (SAO:UBB) (NYSE:UBB) was off 3/16 to
16-1/4.
Venezuela's CANTV (VEN:TDV.D) (NYSE:VNT) was off 14/16 to
14-15/16 and was among volume leaders on the New York Stock
Exchange.
CANTV said late Tuesday it expected its third-quarter and
full-year results to be about 30 percent below previous
management guidelines.
Canada's Northern Telecommunications Ltd. (TSE:NTL) (NYSE:NT)
rose 9/16 to 39-1/16 after beating analysts' estimates of its
third-quarter earnings Tuesday. The shares were among volume
leaders on the New York Stock Exchange.
The Bank of New York index of 439 leading ADRs <.BKADR> was
off 0.94 percent and the Nasdaq ADR index <.IXA> eased 1.56
percent.
ADRs allow U.S. trade of foreign shares.
Copyright 1998, Reuters News Service |
