Market Status at 12h49 pm ET
Brazilian markets are expected to get a boost, mainly after the Central
Bank's announcement yesterday of a package of measures aimed at
preserving the country's reserves, see related story. An improved
scenario in foreign markets overnight, as Dow Jones reported, is also
expected to lift trader sentiment. However, non-professional investors --
which are necessary to keep money gyrating -- are still very cautious as
they know any investment at the moment would be like sticking their
hands in a hornet's nest. So far, so good, but Agˆncia Estado pointed
out this morning that any oscillation detected abroad, be it either in Wall
Street or in Asian or European stock markets, might instantly
reverberate in the domestic front and lead investors into a selling binge.
The Sao Paulo Stock Exchange Index (Ibovespa) is higher by 2.57% at
7,852 points. Trading volume is at R$ 177.889m with some 9.603 bn
shares having changed hands. The Rio de Janeiro Stock Exchange Index
(IBV-RJ) is also higher by 1.85% at 27,519 points. Among the blue
chips, Telebr s PN up 2.95% at R$ 101.20. Eletrobr s also higher by
2.04% at R$ 25.00. Usiminas up 3.14% at R$ 5.25. CSN also up
2.27% at R$ 22.50.
Likewise Brazilian equity markets, the measures adopted yesterday by
the Central Bank is also expected to have a positive impact on the dollar
market, leading commercial projections lower. Measures were adopted
to protect the country's reserves as well as the forex market, which had
accumulated a negative balance of as much as US$7.3bn up to
yesterday. A figure some US$7bn higher than that registered during the
Asian crisis outbreak last October. As for new dollar entries, the
government believes it all will depend on the scenario abroad as well as
on domestic improvements, mainly in the fiscal deficit. However, market
watchers believe the measures could not have been taken in a better
moment. The US commercial dollar Ptax is currently trading at
R$1.1730/R$1.1725. |
