Brazil shares rise early on Telebras, tax talk
Reuters, Wednesday, December 03, 1997 at 09:44
SAO PAULO, Dec 3 (Reuters) - Brazilian stocks rose 0.8 percent in early trade Wednesday on a surprisingly large October net profit at Telebras (SAO:TEL_.P) and a growing sense equities funds will not be affected by a recent tax hike, brokers said.
"Telebras's profit in October was exceptional," said a dealer at local Crefisul brokerage. "Also, people now think equities will not be affected by the new income tax rate."
Sao Paulo's 51-share Bovespa index (INDEX:$BVSP.X) defied expectations of profit-taking at the open and rose 79 points in the first 25 minutes of trade after Telebras released its January-October financial results.
A half hour before the start of trade, Telebras released its 10-month results, including a 3.094 billion-real net profit for January-October and an October net income of 674 million reais.
"People were expecting an October profit of about 300 million or 350 million," said one dealer.
As a result, bolsa benchmark Telebras preferred shot up in early trade, rising 0.93 percent to 124 reais before paring those gains as Wall Street prepared to open.
The index also lost some of its early ground as trading got under way in New York.
248-5570, james.craig@reuters.com))
Copyright 1997, Reuters News Service |
