Brazil shares pare losses in line with Wall Street
Reuters, Monday, September 21, 1998 at 14:18
SAO PAULO, Sept 21 (Reuters) - Brazilian stocks were paring
losses early Monday afternoon as a wave of selling pressure,
prompted by steep declines by overseas equities overnight,
receded in line with a Wall Street recovery, brokers said.
The 57-share Bovespa index (INDEX:$BVSP.X) was down 3.43 percent to
6480 points by 1445 local/1745 GMT, recovering from an early
morning slump of more than 7 percent.
"The Bovespa is poised for more falls on technical charts,
but it seems a better sentiment on Wall Street is helping now,"
a local trader said. The Dow Jones industrial average (INDEX:$INDU)
was down half a percent.
Volume on the Sao Paulo bourse was very low, with about 160
million reais ($135.5 million) reported by early afternoon.
"It was easy to come back up because the fall this morning
seemed to lack substance," one trader said.
Receipts of Telebras preferred shares (SAO:RCTB40), which
replaced the preferred shares of former telephone giant
Telebras on Monday, were trading at 83.80 reais. The price was
2.89 percent lower than Telebras preferred's close on Friday.
The Sao Paulo bourse listed and started trading in the 12
units carved out of Telebras -- Brazil's top blue-chip company
which was privatized on July 29.
Though investors could still trade in the receipts, which
served as a basket of the 12 units, players were also allowed
to trade in the individual units starting today.
Two of them, Telesp Participacoes preferred (SAO:TLPP4) and
Tele Norte Leste Participacoes preferred (SAO:TNLP4), were
trading at 31.50 reais and 20 reais, respectively. Telesp
Celular preferred (SAO:TSPP4) was quoted at 8 reais, while
Embratel (SAO:EBTP4) was at 15 reais.
In Brazil's debt market, C-bonds <BRAZILC=RR>, traded in
New York were up 0.5 percentage points to 61.625, recovering
from a 2.625-point decline earlier.
Copyright 1998, Reuters News Service |
