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Brazil shrs seen opening higher on follow-up buys
Reuters Story - August 07, 1997 08:47
%LATAM %EMRG %BR %LDC %STX %.SA .BVSP TEL_p.SA V%REUTER P%RTR
* Cenbank chief nominee Gustavo Franco goes before Congress
* Credireal bank to be auctioned at 1630 local/1930 gmt
SAO PAULO, Aug 7 (Reuter) - Brazilian stocks are likely to
to rise at the open on spillover buying and continued optimism
on telecoms privatizations, maintaining an upbeat mood that
drove up share prices Wednesday, brokers said.
"The market looks pretty optimistic," said John Carioba of
local Indusval brokerage.
The Sao Paulo bolsa's Bovespa index of 47
most-traded shares surged 5.16 percent to end at 11,523 points
on moderate trade of 867.6 million reais ($594.6 million).
Brokers said Wednesday's session closed amid strong buying
and the rising trend was likely to carry over to the start of
trading Thursday.
"Today, the market is likely to continue the upward move
after closing so strongly," an analyst at a local investment
bank said.
Wednesday's hike was sparked by comments by Communications
Minister Sergio Motta, who reiterated the government's goal of
selling off federal telecom holding Telebras by
mid-1998.
But brokers said the bolsa, which also was helped by rises
on Wall Street, was simply poised for a rise after five
consecutive losing sessions.
"The market was waiting for a reason to go up," a dealer
said.
Nonetheless, optimism after Motta's comments was likely to
continue Thursday and prices would continue rising, barring any
negative news about the economy, brokers said.
Central bank chief nominee Gustavo Franco's scheduled
appearance before Congress was unlikely to affect the bolsa as
the market expects little opposition to his confirmation.
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