Brazil shares soar cheering gov't win in Congress
Reuters, Thursday, November 05, 1998 at 12:31
SAO PAULO, Nov 5 (Reuters) - Brazilian shares were soaring
in mid-afternoon trade Thursday as investors continued to cheer
the government's pension reform victory in Congress on
Wednesday and as some foreign investment started to flow in,
traders said.
The market's blue chip Bovespa index (INDEX:$BVSP.X) was up 3.14
percent at 7,896 points by 1507 local/1707 gmt, extending its
big 17-percent gain in the last three sessions.
"Some foreign investment is starting to flow in after
yesterday's vote in Congress," said one trader.
The government on Wednesday successfully defeated three
final opposition amendments to the country's long-delayed bill
to reform the pension system.
The vote was seen as a test of the government's ability to
push ahead with other reforms and cost-cutting steps included
in its $84 billion austerity plan announced last week.
"I think the mood is changing. The Bovespa has been up 17
percent already, but it is still down close to 30 percent on
the year," said one trader at Sao Paulo Corretora.
Among benchmark issues, Telebras preferred receipts
(SAO:RCTB40) gained 4.65 percent to 101.20 reais, while
Petrobras preferred (SAO:PETR4) rose 3.54 percent to 176 reais.
Copyright 1998, Reuters News Service |
