Brazil stocks rally to record, currency firms
SAO PAULO, Brazil, Dec 5 (Reuters) - Brazil's stocks rallied to a record high and the currency strengthened on Tuesday on increased investment flows to Latin America's largest economy.
The Sao Paulo Stock Exchange's benchmark Bovespa index <.BVSP> rose 0.8 percent to 43,007.13 points, surpassing a record high set on Monday. The Brazilian real <BRBY> was 0.28 percent stronger at 2.159 per U.S. dollar.
ELMAT: Print working. capital moving in.
Brazil's treasury on Monday reopened the sale of its 2022 real-denominated global bonds, signaling increased appetite for the country's securities. Local markets also took a boost from surging U.S. stocks that may also help lift markets on Tuesday, said Luiz Roberto Monteiro, investment adviser at Souza Barros brokerage.
"Now what everyone is waiting for it to see what will happen in New York. Yesterday, the markets there helped push it higher here," Monteiro said.
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The Sao Paulo stock exchange had a net foreign investment inflow of 1.49 billion reais ($690 million) in November, the second biggest monthly inflow in 2006, according to data released late on Monday. Foreign investors bought 18.81 billion reais worth of stocks and sold 17.32 billion reais worth of shares.
On the stock market, shares of Petrobras (PETR4.SA: Quote, Profile , Research), the heaviest-weighted stock in the Bovespa index, rose 0.9 percent to 46.53 reais.
Its U.S.-traded American Depositary Receipt (PBR.N: Quote, Profile , Research) rose 0.7 percent to $96.27. Credit Suisse said in a report on Monday its target price of $137 per each U.S. traded share of Petrobras "may prove conservative" because of expectations the company's oil production and exploration will expand in 2007.
Iron ore miner CVRD (VALE5.SA: Quote, Profile , Research), the second heaviest stock in the index, rose 1.2 percent to 52.90 reais. The company said on Monday its Carajas iron ore project reached a record output of 7.8 million metric tons in November, helping push production for the year 14.1 percent from the same 11-month period in 2005. CVRD on Tuesday unveiled its Capim Branco hydroelectric power project, slated to generate 450 megawatts of electricity.
Steelmaker Gerdau (GGBR4.SA: Quote, Profile , Research) rose 1 percent to 34.79 reais. Credit rating company Moody's Investors Service raised Gerdau's global local currency debt rating one notch to Ba1, while it affirmed Gerdau's Ba1 foreign currency debt rating |
