05/28/2002
Dow Jones News Services
(Copyright © 2002 Dow Jones & Company, Inc.)
(MORE) DOW JONES NEWS 05-28-02
09:42 AM
*DJ Merrill Lynch Had Brazil's Telemig Cel At No Exposure
(MORE) DOW JONES NEWS 05-28-02
09:43 AM
DJ Merrill Lynch Ups Brazil Telcos -2: At Petrobras' Expense
NEW YORK (Dow Jones)--Merrill Lynch raised Monday its equity portfolio recommendation on Brazilian
telecommunications company Tele Norte Leste Participacoes SA (TNE), or Telemar, to overweight from underweight, and on
Brazilian wireless service provider Telemig Celular Participacoes SA (TMB) to strong overweight from no exposure.
Merrill financed its move with cash in the portfolio and by cutting exposure to Brazilian oil company Petroleo Brasileiro (PBR)
to underweight from overweight.
Latin American telecoms are relatively sheltered from world-wide problems in the industry, which has underperformed other
sectors this year, Merrill said. Also, telecoms in selective countries can do well when moved by specific developments within
those economies, Merrill added.
"We continue to see Brazil as having the best potential for domestic catalyst improvements, namely monetary policy, oil prices,
politics, potential improvements in country risk and earnings momentum," Merrill said in a research note.
Merrill added exposure to Brazil in its portfolio for the first time since January. It expects to do the same to other "domestic
driven stories" in the next few weeks.
-By Sonja Ryst, Dow Jones Newswires; 201-938-2245; sonja.ryst@dowjones.com
(END) DOW JONES NEWS 05-28-02
10:04 AM
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