Brazil shrs end up 4 pct, hopeful on Congress vote
Reuters, Wednesday, January 20, 1999 at 15:59
SAO PAULO, Jan 20 (Reuters) - Brazilian stocks ended 4
percent higher Wednesday as investors pinned their hopes on a
key anti-crisis measure finally clearing the lower house of
Congress later today, traders said.
The market's blue-chip Bovespa index (INDEX:$BVSP.X) finished up
3.98 percent at 7,674 points on substantial turnover of about
$412 million. The market's bellwether issue Telebras preferred
receipt (SAO:RCTB40) added 2.47 percent to 112 reais.
"A good outlook on the vote gave the market a kick because
investors remembered how much the market had lost right after
this same bill was rejected in December," said Roque Sut
Ribeiro, fund manager at Banco Marka in Rio de Janeiro.
SAO PAULO, Jan 20 (Reuters) - Brazilian stocks ended 4
percent higher Wednesday as investors pinned their hopes on a
key anti-crisis measure finally clearing the lower house of
Congress later today, traders said.
The market's blue-chip Bovespa index (INDEX:$BVSP.X) finished up
3.98 percent at 7,674 points on substantial turnover of about
$412 million. The market's bellwether issue Telebras preferred
receipt (SAO:RCTB40) added 2.47 percent to 112 reais.
"A good outlook on the vote gave the market a kick because
investors remembered how much the market had lost right after
this same bill was rejected in December," said Roque Sut
Ribeiro, fund manager at Banco Marka in Rio de Janeiro.
Investors expected the lower house to approve a
controversial pension reform bill today that proposed charging
social security from retired civil servants.
The infamous bill, which had already been turned down by
the house four times, represented a crucial part of the
government's fiscal austerity package -- expected to add 28
billion reais ($18 billion) to government coffers this year.
Brazil's stock market plunged after the bill was rejected
last time, in December, triggering more dollar outflows from
the country's currency markets and eventually leading to a
devaluation of the local currency.
By 1717 local/1917 GMT, the lower house had started
debating on an urgency motion, which would allow the bill to
bypass panel hearings and go straight to the floor.
"Everybody knows today's vote is crucial, also for Brazil
to restore investor confidence," said one local trader.
Brazilian stocks have been up every day since the
government floated the currency last Friday, a move that
resulted in a devaluation of the real of 24 percent so far.
Among other blue-chip shares, Petrobras preferred
(SAO:PETR4) rose 5.8 percent to 118.50 reais, while Eletrobras
preferred (SAO:ELET6) gained 6.2 percent to 25.70 reais on
Wednesday.
Copyright 1999, Reuters News Service
|
