what does this mean? good time to add more TBR?>
Brazil stocks slip 0.19 pct, baffling traders
BRASILIA, July 30 (Reuter) - Brazilian stocks slipped 0.19 percent at the close Wednesday after a volatile day of ups and downs that most traders said left them
baffled.
The Sao Paulo bolsa's Bovespa index of 47 leading shares, having at one point in the day risen about 1.5 percent, ended at 13,018 points compared with 13,044 at the
open.
Turnover was slightly lower than in recent weeks at some 944 million reais, traders said.
``We are all asking ourselves why the market is down. There are no new factors,'' said John Carioba, a trader at Indusval brokerage.
``The market still has quite a lot of fat on it so maybe some people took the opportunity to make profits,'' he added.
Another Sao Paulo trader shared Carioba's dismay.
``You can't imagine what my head feels like,'' he said. ``There's absolutely no justification for these movements.''
But other players said investors had built up positions on the expectation of a sharp rise Wednesday morning on ``euphoria'' at news that Central Bank International
Affairs Director Gustavo Franco had been nominated to take over the bank's presidency.
When the spike failed to materialize, they decided to close their positions, especially with an eye on option expiries next month.
``There was a lot of speculative movement,'' said one trader.
There is continuing uncertainty about who will replace Franco at the helm of Brazilian foreign exchange policy. But market players noted Franco was likely to keep a
close watch over forex, an area he regards as ``his baby''. The bolsa's benchmark Telebras preferred (TEL_P.SA) (TEL.SA)(TBR - news) fell 0.43 percent to close at
163 reais a share.
A $500 million global and local share offering by power utility Copel (CPL.SA) (CPL_PB.SA) was well received in New York, where its American Depositary Shares
(ADS) immediately became the third most active stock.
Copel's preferred shares rose 3.19 percent to 21.0 reais in Sao Paulo. |
