Brazil shrs end firm but investors still nervous
Reuters, Friday, August 14, 1998 at 17:07
SAO PAULO, Aug 14 (Reuters) - Brazilian shares managed to
keep positive ground at Friday's close as investors hesitated
to largely shift positions ahead of the weekend, especially
after prices hit a nine-month low this week, brokers said.
"The market hasn't yet decided whether it wants to stay up
or down," said one trader at Corretora Doria & Atherino. "The
bourse is still very sensitive to any news coming from Russia
and Asia, and obviously to how Wall Street reacts," he said.
The Bovespa index (INDEX:$BVSP.X) of 58 most active shares ended up
0.38 percent at 8,744 points. The index reversed a nine-day
fall on Thursday, ending up 3.49 percent.
Prices jumped up in early trade cheering calm in Asian
markets overnight, but flirted with Thursday's closing level
thereafter. It was mostly down in afternoon trade, before
edging up at the close.
Brokers said the positive closings in the last two sessions
were mostly linked to technical correction after the market
plunged 23 percent during the nine-day slump. By Friday's
close, the Bovespa was down 14 percent so far this year.
"It is very hard to guess what next week will look like,
although the general tendency is to correct what we have lost
so far," said the Doria trader.
Activity was expected to pick up early next week in
relation to Monday's expiration in option contracts.
The slump continued in the blue-chip shares. Telebras
preferred (SAO:TELB4) ended down 0.44 percent at 112.50 reais,
while Eletrobras (SAO:ELET6) slipped 0.97 percent at 29.71
reais. However, Petrobras (SAO:PETR4) ended up 0.51 percent at
199 reais and Vale do Rio Doce (SAO:VALE5) was up 0.49 percent
at 20.40 reais.
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
