Brazil stocks rally amid Wall Street recovery
Reuters, Tuesday, September 01, 1998 at 12:53
SAO PAULO, Sept 1 (Reuters) - Brazilian stocks were
rallying in midday trade Tuesday as investors took heart from a
recovery in the Dow Jones industrial average, and market
players bought on the belief local shares merited a rebound,
brokers said.
The blue-chip Bovespa index (INDEX:$BVSP.X) shot up 3.02 percent to
6,668 points by 1300 local/1600 GMT after flirting with the
previous day's close earlier in the session. It had lost 4
percent on Monday.
Investors fished for cheap Brazilian shares after the Dow
Jones left its morning seesaw trade and jumped more than 2
percent, brokers said.
"Prices are very low, cheap enough to attract buyers," said
one local trader. "On the other hand, the world is still in
chaos, which means the rally could be limited." Volume was
still a low 321 million reais ($274 million) by midday.
The Bovespa's index futures were also trading higher, with
the most liquid October contracts up 4.83 percent to 6,730
points. This signaled a more positive price outlook for
individual shares, some brokers said.
Sao Paulo's top blue-chip issue Telebras preferred
(SAO:TELB4), which accounts for half of the bourse's trading,
rose 3.35 percent to 86.30 reais before the midday break.
Petrobras preferred (SAO:PETR4) shot up 9.17 percent at 131
reais, while Eletrobras preferred B (SAO:ELET6) added on 9.44
percent to 19.70 reais and Vale do Rio Doce (SAO:VALE5) rose
5.13 percent to 16.40 reais.
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
