Brazil shrs reverse 9-day loss on bargain hunting
Reuters, Thursday, August 13, 1998 at 14:38
SAO PAULO, Aug 13 (Reuters) - Brazil's key share index
Bovespa (INDEX:$BVSP.X) jumped 3.53 percent in mid-afternoon trade as
bargain hunting kicked in following nine consecutive sessions
of losses through Wednesday, brokers said.
The Bovespa was trading at 8,714 points by 1510 local/1810
GMT after opening mixed and flirting with Wednesday's closing
level for most of morning trade.
"In nine days prices fell back to the levels they were in
January," a trader at a local brokerage said. "There are some
good buying opportunities, but the tendency is still downward,"
said one local trader. The Bovespa lost 23 percent in the last
nine sessions.
"The market is really moving in conjunction with the
C-Bonds," he added. The C-Bond, a Brazilian dollar denominated
instrument which is traded overseas and is widely considered a
benchmark for emerging market papers, was up 3.750 cents at
67.375 by mid-afternoon Wednesday. C-bonds were acting like a
trigger for Brazilian stocks in the recent plunge.
Sao Paulo's blue-chip share Telebras preferred (SAO:TELB4)
spiked 3.99 percent to 114.60 reais, while Petrobras (SAO:PETR4)
rose 2.85 percent at 199 reais.
Eletrobras preferred B shares (SAO:ELET6), which lost about
10 percent on Wednesday hit by sales across the board, gained
8.78 percent to 29.60 reais.
Meanwhile, in Brazil's currency market, the real was
trading stable at 1.1715 reais against the dollar by
mid-afternoon after closing at 1.1714 on Wednesday.
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
