Brazil shrs end down on worries of capital flight
Reuters, Wednesday, September 09, 1998 at 17:25
SAO PAULO, Sept 9 (Reuters) - Brazilian shares ended down
for the fifth straight session on Wednesday as local and
foreign investors in local assets continued to be vexed by the
huge outflow of dollars recorded in recent days, brokers said.
The 57-share Bovespa index (INDEX:$BVSP.X) ended down 2.78 percent
at 5,655 points in weak volume of about $381 million.
"Things remain the same. We just have to wait until world
markets calm down a bit and investors start regaining
confidence in Brazil," said one Banco Santander trader.
Forex dealers have speculated about $850 million fled
Brazil's forex markets on Wednesday.
On Tuesday, Brazil's commercial and floating forex markets
had posted a $885 million net outflow. The figure, while
robust, remained well below a $2.925 billion drainage recorded
last Friday--the biggest single day outflow of the U.S.
currency since late last year's when the Asian crisis began.
Outflows had declined somewhat after the government decided
to virtually raise basic interest rates by 50 percent to nearly
30 percent late on Friday.
The government also showed its determination to tackle its
dire fiscal problems on Tuesday by announcing spending cuts,
though investors were not too encouraged, brokers said.
Copyright 1998, Reuters News Service |
