Tele Norte Leste Part S A NYSE: TNE
Last Update: 9:56:00 AM ET Aug 13, 2001
Brazil markets soft on lack of Argentine aid news
SAO PAULO, Aug 13 (Reuters) - Brazilian stocks and currency opened
softer on Monday on disappointment there had been no weekend news on
new loans for recession-hit Argentina, leaving local markets stuck in
suspended animation, traders said.
Brazil's benchmark Bovespa () index was 0.4 percent weaker at 13,859 as
players ate into small gains made on Friday on optimism that meetings
between Argentine officials and the International Monetary Fund (IMF) would
yield a new loan.
The Bovespa, which stands about 8 percent down on the year, was expected
to remain under pressure by fears the neighbor's chronic economic problems
would lead to a debt default and scare investors from the region as a whole.
But a raft of first half results including market heavyweight Telemar (TNLP4)
(TNE), No.1 exporter Embraer (EMBR4) (ERJ), and steelmaker CSN
(CSNA3) (SID) could provide something for players to focus on, dealers said.
Meanwhile the Brazilian real <BRBY> currency slipped to 2.485 per dollar
from Friday's close of 2.463 per dollar in thin trade as foreign exchange
players shared the same disappointment about the lack of news on the
Argentine front.
"The market is mainly watching Argentina," said Banco Cidade head stocks
trader Tomi Taterka. "We were waiting for some news over the weekend
which didn't come."
RESULTS BONANZA
Aircraft-maker Embraer was up 2.0 percent at 22.85 reais after posting a 165
percent jump in first half profit to 557.1 million reais ($222) on the back of
growing sales and a favorable currency effect.
The company, whose results were in line with market forecasts, benefited as
its heavy dollar earnings were magnified in local terms by a 15 percent-plus
depreciation in the real currency in the first six months of the year.
Telemar, Brazil's biggest fixed-line phone operator, was 0.9 percent softer at
31.50 reais in early trade ahead of first-half results analysts expect will show
bad debts casting a shadow over firm operational earnings.
"Nobody's expecting good numbers," Taterka said. The results are due after
the close.
Steelmaker Companhia Siderurgica Nacional (CSN) fell 1.3 percent to 38.00
reais after posting a first half net loss of 180.6 million reais ($72), a big
deterioration from the 146.3 million reais ($58) profit it made in the first half of
2000.
The company suffered in the first quarter as its dollar-denominated debts
were magnified in local terms by the depreciation of the real over the period.
($1=2) REUTERS
Rtr 09:56 08-13-01
Selector Code: reucoCopyright 2001, Reuters News Service
Additional Quotes:
ERJ
36.70
+0.45
SID
15.05
-0.45
ART |
