Brazil stocks close flat,Globocabo shines on TI talks
Reuters, 06/14/2000 17:56
By Andrei Khalip
SAO PAULO, June 14 (Reuters) - Brazilian shares ended little changed on Wednesday after seesawing for most of a session during trade that grew more active following a report of modest U.S. inflation in May, traders said.
"Turnover picked up as many operators who remained on the sidelines awaiting U.S. consumer price inflation stepped back into the market," said one trader with a big Sao Paulo brokerage.
Among the few gainers was Internet and pay television company Globocabo (SAO:PLIM4). One of the most liquid shares, it rose 7.2 percent to 2.4 reais as the company confirmed it was in talks with Telecom Italia (MILAN:TIT) about a possible partnership. Company officials gave no details.
Sao Paulo's Bovespa blue-chip index (INDEX:$BVSP.X) ended 0.1 percent higher at 16366 points. Turnover was over 900 million reais ($500 million), well above May's daily average of 666 million.
Another big gainer was cellular phone company Tele Centro Oeste Celular (SAO:TCOC4), which rose 5.9 percent to 7.2 reais in heavy trading. Traders attributed the rise to growing expectations that the company would buy back shares in the market or restructure its capital.
"The flow in the stock is very big, which is also propping it up," said Renato Vercesi of BBA/Icatu brokerage.
Most other telecommunications stocks, considered as the hi-tech component of the local market, fell on Wednesday more or less in line with Nasdaq.
Telesp Celular Participacoes (SAO:TSPP3), whose parent company Portugal Telecom (LIS:PTCO) bought back 1.3 billion reais worth of the company's stock from the local market Tuesday, continued to fall, sliding 4 percent as liquidity decreased sharply.
The Bovespa has risen 9.3 percent so far this month but has fallen 4.3 percent since the start of the year.
Modest U.S. inflation data coupled with a Federal Reserve report suggesting economic cooling raised hopes the Fed would leave interest rates unchanged at its next meeting. Higher U.S. rates siphon investor cash away form emerging economies like Brazil and raise borrowing costs.
Traders said Bovespa's seesawing reflected a discrepancy between the key U.S. stock indices. U.S. stocks had only a short rally after the inflation report, and the tech-heavy Nasdaq index proceeded to fall to end Wednesday 1.4 percent lower. The Dow Jones industrial average closed 0.6 percent up.
Copyright 2000, Reuters News Service |
