Brazil shares race up ahead of key Congress vote
Reuters, Wednesday, November 04, 1998 at 13:07
SAO PAULO, Nov 4 (Reuters) - Brazilian stocks raced up in
afternoon trade Wednesday as more optimism spread in the market
ahead of a key reform vote in Congress later today, traders
said.
The key Bovespa index (INDEX:$BVSP.X) jumped 3.24 percent to 7,753
at 1525 local time/1225 EST/1725 GMT after wallowing in the
positive zone for most of the morning session.
The Bovespa's gains were also underpinned by a powerful
rally in the Dow Jones industrial index (INDEX:$INDU), traders said.
The Dow was up 122 points at 8,829.
"The market is cheering the prospects of the Congressional
vote and a higher Dow Jones," said one local trader.
The lower house of Congress will vote on the final three
opposition amendments to the country's long-delayed social
security reform bill. Voting will start no earlier than 1700
local time/1400 EST/1900 GMT, Congressional sources said.
Earlier in Brasilia, Social Security Minister Waldeck
Ornelas said the government has just enough support to defeat
the amendments.
The pension reform bill is crucial to the government's
efforts to stem a deficit in Brazil's public and private sector
pension systems, which is set to top $35 billion this year.
The result of today's vote is also important as it could be
a precursor of the government's chances in getting its budget
cuts passed in Congress.
The government announced last week it will save $84 billion
over the next three years as a prerequisite to securing
financial backing from the International Monetary Fund (IMF).
Among Sao Paulo's blue chips, Telebras preferred receipts
(SAO:RCTB40) rose 2.71 percent to 98.60 reais, while Petrobras
preferred (SAO:PETR4) jumped 4.6 percent to 171.30 reais.
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
