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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: wl9839 who wrote (21074)	6/27/2000 11:44:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil shrs seen down on U.S. rate fears, swap end Reuters, 06/27/2000 09:46 SAO PAULO, June 27 (Reuters) - Brazilian shares should continue slipping on Tuesday as nervousness spreads across the market ahead of Wednesday's U.S. rate decision and due to the end of a major telecoms swap operation, traders said. "The market will depend on foreign markets and any news from the States on rates. We expect more profit-taking as arbitrage in telecoms, which has been supporting the market for a while due to Telefonica's swap, ends today," said Sergio Airoso, chief trader with ABN AMRO Bank. On Monday, Brazil's benchmark Bovespa index (INDEX:$BVSP.X) ended 1.4 percent lower at 16,745 points. Turnover was a moderate 660 million reais ($363 million), about the same as May's daily average. The offer by Spain's Telefonica's (MADRID:TEF) to swap its shares in the form of Brazilian Depositary Receipts for those of its Brazilian subsidiaries, Telesp (SAO:TLPP4) and Tele Sudeste Celular (SAO:TSEP4), expires on Friday. Many investors have been recently remodelling their portfolios switching from Telesp and Tele Sudeste to other telecoms, which has helped the market in general. Telesp ordinary stock (SAO:TLPP3) collapsed 19.3 percent to 21.8 reais on Monday after heavy dumping by one investor, traders said. Tele Sudeste ordinary (SAO:TSEP3) also took a nosedive, plunging 13.6 percent to 6.3 reais. Traders expect there will be fairly low liquidity for the BDRs, compared with the leading role Telesp plays in the market. Petrobras state oil giant (SAO:PETR4) may rise on Tuesday after a senior government source said Brazil would offer 18 billion common shares in the company to foreign investors in July and make the definitive sale of the government's stake in early August. The market could move sharply until Wednesday -- when the U.S.Federal Reserve decides whether or not to raise U.S. rates -- depending on any rate-linked news or rumors, traders said. The Fed may raise the rates in a bid to slow the pace of economic growth that is threatening to push up inflation. For emerging economies like Brazil, higher U.S. rates may increase borrowing costs and drain away capital. Despite two consecutive falls Friday and Monday, the Bovespa index has gained 11 percent so far in June. But it is off 2 percent since the start of the year. ---------------------------------------------------------------

To: wl9839 who wrote (21074)	6/28/2000 11:31:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

You guys watching TSP and TSD today? They're getting killed, both down at least 22%. I checked with my broker just for the heck of it to see if too late to tender electronically as if I could have I would have bought thousands of shares and tendered them immediately. Hard to understand why anyone would have held the shares with all the warnings in the prospectus regarding those who did not tender. Wonder if these are good short candidates going forward? I am officially removing TSP and TSD from my quote system portfolio and putting in 657 shares of TEF. I hope they TEF shares show up by Friday or this could skew my month-end statement. WCOM looking up today. Butting up against resistance on incredibly heavy volume of over 42 million shares. I hear DT may make a bid, but also hear WCOM could be looking at NXTL and somebody else. CS reports tonight...hoping for some new details on the breakup...apparently they are going to release numbers for the four new companies. Thinking of picking up some HLIT for a late year double play after the killing yesterday. regards, sf sf