Brazil shares seen strong with foreign confidence
Reuters, Tuesday, May 11, 1999 at 09:14
SAO PAULO, May 11 (Reuters) - Brazilian shares should open
strong Tuesday after hitting a record high close Monday as
foreign investors flood the market, traders said.
"The market is firm, strong and calm, with volume, which
is super important, and with outside buying," one trader said.
Sao Paulo's benchmark Bovespa stock index (INDEX:$BVSP.X) closed
with 1.46 percent in gains Monday to a record high 12,412
points, its highest close since Oct. 22, 1997.
The market has surged 15 percent in two weeks amid a new
wave of foreign investors confident that Brazil has turned the
corner on a currency crisis that hit in mid-January.
Stable inflation and quicker-than-expected interest rates
cuts have improved the outlook for Brazil's economy and for
companies.
Waning interest in a foreign exchange market scandal --
which is being investigated by a Senate panel -- also buoyed
stocks after sending jitters through the market in April.
Some traders said there could be profit-taking on Tuesday
in order to consolidate the upward trend.
rio.newsroom@reuters.com))
Copyright 1999, Reuters News Service
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