Brazil shrs set for quiet day with some buy-backs
Reuters, Friday, September 04, 1998 at 09:16
SAO PAULO, Sept 4 (Reuters) - Brazilian stocks are poised
for a quiet session on Friday, with some investors buying back
on Thursday's steep price losses, but most players are likely
to stay away from the market ahead of Monday's holiday.
"Nobody would take up a risky position today, ahead of
Monday's holiday," said a trader at Banco Santander in Sao
Paulo. "It will be a quiet day with very little volume."
On Thursday, the bourse's key Bovespa index (INDEX:$BVSP.X) plunged
8.61 percent to close at 6,219 points, or at its two-year low,
after Moody's Investors Service downgraded the country's
speculative credit rating.
"Yesterday's fall was definitely exaggerated," said another
trader at big local bank, expecting a decent price correction
on Friday. Moody's said Thursday it was downgrading its ceiling
for Brazilian foreign currency bonds and notes to B2 from B1
and the ceiling for foreign currency bank deposits to Caa1.
The local stock market reacted immediately to the news.
However, Brazil's dollar-denominated debt, namely C-bonds,
traded in New York, seemed to weather the effect. The papers
were trading up 1.750 points at 56.625 on early Friday. In the
currency market, the real was trading down 0.04 percent at
1.1785 to the dollar in early trade.
Forex traders said the market was nervous after the real
dipped 0.08 percent on Thursday and that sentiment would still
depend largely on fresh developments on Russia's economic
situation and the knock-on effect it may have on other Latin
American currencies. Brazil's Central Bank was rumored to have
intervened in the market Thursday selling dollars.
Bluechip activity Thursday:
Telebras (SAO:TELB4) down 10.29 pct at 76.70 reais
Petrobras (SAO:PETR4) down 5 pct at 133 reais
Eletrobras (SAO:ELET6) down 8.41 pct at 18.60 reais
Vale do Rio Doce (SAO:VALE5) down 8.88 pct at 15.40 reais
Bovespa :* Thursday: down 8.61 pct at 6,219 points
* Week: down 7.8 pct * Month: down 3.9 pct
* Year-to-date: down 39.0 pct
SELIC (open): 2.09 pct, Dollar/Real: 1.1785 per dollar
YESTERDAY'S STORIES 1/8 1/4SUR 3/8
SPOT REAL QUOTES <BRBY>
BOVESPA STOCK INDEX (INDEX:$BVSP.X)
ELECTRICAL ENERGY INDEX <.IEE>
BRAZILIAN ADR PRICES <BR/ADR>
BRAZILIAN BRADY BOND PRICES <2LDO>
BRAZILIAN DOLLAR FLOW HISTORY <BRFLOW>
Copyright 1998, Reuters News Service |
