Brazil shares post biggest drop in 4 mos at close
Reuters, Thursday, August 20, 1998 at 17:58
RIO DE JANEIRO, Aug 20 (Reuters) - Brazilian shares dropped
sharply in late trade Thursday after a harrowing session in
many world markets, closing officially 6.43 percent lower, the
biggest fall in four months.
The Bovespa index of 58 leading shares (INDEX:$BVSP.X) was down
6.55 percent at 7982 points at the closing bell, but ended
officially after all trades were counted at 7991 points.
The Sao Paulo stock market said it was the biggest plunge
since May 18 when the index posted the same 6.43 percent
decline.
Traders said Brazil's bourse was battered by emerging
market fears fueled by the economic woes of Russia and
Venezuela.
RIO DE JANEIRO, Aug 20 (Reuters) - Brazilian shares dropped
sharply in late trade Thursday after a harrowing session in
many world markets, closing officially 6.43 percent lower, the
biggest fall in four months.
The Bovespa index of 58 leading shares (INDEX:$BVSP.X) was down
6.55 percent at 7982 points at the closing bell, but ended
officially after all trades were counted at 7991 points.
The Sao Paulo stock market said it was the biggest plunge
since May 18 when the index posted the same 6.43 percent
decline.
Traders said Brazil's bourse was battered by emerging
market fears fueled by the economic woes of Russia and
Venezuela.
"The big problem is that because Brazil is an emerging
country the same as Russia, Venezuela and Mexico. You are
always running a Brazil risk that the same thing happening in
Russia -- or now Venezuela -- could happen here," one trader
said.
Worries caused by Russia's financial crisis earlier in the
week were compounded Thursday by strong rumors that Venezuela's
government was planning to devalue its currency.
The news of deep trouble in Brazil's backyard sent asset
prices plummeting, an uneasiness that only grew when
international markets were further unhinged by news that the
United States had attacked sites in Afghanistan and Sudan.
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