Brazil shares end up 5 pct after overseas gains
Reuters, Monday, November 16, 1998 at 16:08
SAO PAULO, Nov 16 (Reuters) - Brazilian stocks rose more
than 5 percent to close at their session highs on Monday, as
overnight gains on Asian and European bourses and optimism
inspired by Brazil's IMF accord lifted local share prices.
The blue-chip Bovespa index (INDEX:$BVSP.X) finished 5.11 percent
higher at 8,004 points in a late rally that pushed Telebras
preferred receipts (SAO:RCTB40), the market's benchmark, up 6.61
percent to 101.70 reais.
"The fact that Telebras finished above 100 reais, its
psychological barrier, is an important sign," said a trader at
Corretora Doria & Atherino, a Brazilian brokerage.
Investors started picking up relatively cheap Brazilian
blue-chips after the IMF deal was announced on Friday. The
International Monetary Fund and other lenders had agreed to
provide Brazil with a $41.5 billion package to shore up its
economy, traders said.
As of Monday's close, the Bovespa was still down 21 percent
so far this year.
The session also marked the first day of trading in New
York for companies that were spun off from Telebras, Brazil's
former telephone holding. The American Depositary Receipts
showed solid gains on the New York Stock Exchange, which gave a
further boost to Sao Paulo's Bovespa.
The ADRs of Telesp Participacoes (NYSE:TSP_.W) -- one of
analysts' favorites -- rose to 28-7/16 in late trading from an
opening quote of 27-3/4.
Among other key issues in Brazil, Petrobras preferred
(SAO:PETR4) added 5.2 percent to 184 reais, while Eletrobras
preferred (SAO:ELET3) gained 6.5 percent to 30.90 reais.
Traders said shares were expected to extend their rally
this week. Volume, reported at a moderate 494 million reais
($415 million) on Monday, is expected to rise as foreign
investors pour fresh money into the market.
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
