Brazil shares soar ahead of much-awaited IMF deal
Reuters, Friday, November 06, 1998 at 09:25
SAO PAULO, Nov 6 (Reuters) - Brazilian shares surged on
early Friday as investors predicted the government would soon
secure a special credit line from the International Monetary
Fund (IMF), brightening the country's economic outlook.
The blue chip Bovespa (INDEX:$BVSP.X) jumped 3.31 percent to 8,361
points after gaining 24 percent in the last four sessions
mainly as optimism grew on the IMF deal.
Traders pointed out that Brazil's Central Bank President
Gustavo Franco traveled to Washington late on Thursday to
review the final details of an international aid package being
put together by the IMF.
"That means very soon there would be some good news," said
one chief trader at local Indusval brokerage.
Bovespa's Friday rally was also helped by signs that
foreign funds were trickling back into the local bourse after
the government managed to approve the long-delayed pension
reform bill in Congress late on Wednesday.
Brazil gained a net $266 million in foreign exchange
markets on Thursday, marking the first net daily inflow of the
U.S. currency in more than two weeks. This also underpinned
sentiment in the stock market, traders said.
Among Sao Paulo's blue chips, Telebras preferred receipts
(SAO:RCTB40) gained 3 percent to 106.40 reais, while Petrobras
preferred (SAO:PETR4) rose 2.49 percent to 185.50 reais.
Petrobras, Brazil's state oil giant, said on Friday it
signed a $12.4 million oil exploration and production
partnership deal with Argentina's Perez Companc SA (SAO:PER) and
U.S.-based Kerr-McGee Corp. (NYSE:KMG).
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
