Brazil shrs slip 2.51 pct on emerging market woes
Reuters, Wednesday, August 12, 1998 at 14:47
SAO PAULO, Aug 12 (Reuters) - Brazil's key Bovespa (INDEX:$BVSP.X)
index slumped 2.51 percent in afternoon trade, reversing
morning gains of up to 2.99 percent on emerging market concerns
and falling C-Bonds, traders said.
"This is a third world thing with investors selling
emerging markets," a trader from Finambras brokerage said. "It
started with C-Bonds falling and led to stocks."
Sao Paulo's Bovespa index of the 58 most traded shares
tumbled 2.51 percent to 8,581 points amid a general decline in
Latin America bourses. Telebras (SAO:TELB4) led declining shares
with a 2.89 percent drop to 111.0 reais.
The C-bond, a Brazilian dollar-denominated instrument
traded overseas, is widely considered a benchmark for emerging
market bonds.
It fell 6 percent from its highest point on Wednesday on
concern that investors could abandon emerging markets amid
prolonged financial problems in Russia and Asia, traders said.
Brazil's currency market was not affected. Mexican stocks
fell 1.45 percent and Argentine shares slumped 0.85 percent.
Brazilian stocks also suffered as Bovespa index futures
expired on Wednesday. Stocks are generally more volatile around
the expiration date of index futures.
"The expiration of the index and new declines in Brady
bonds are pushing stocks down," a trader said.
shasta.darlington@reuters.com))
Copyright 1998, Reuters News Service |
