Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Steve Fancy who wrote (21106)	7/10/2000 11:52:35 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazilian shares set to greet rate cut heartily Reuters, 07/10/2000 09:50 SAO PAULO, July 10 (Reuters) - Brazil's benchmark stock index on Monday looked set to build on a four-month high, as investors geared up to celebrate the central bank's decision to cut interest rates, traders said. Brazil's Central Bank lowered the country's key interest rates after the close of trading on Friday, the second rate cut in less than three weeks. Lower rates help to stimulate growth and consumption and reduce borrowing costs for Brazilian companies. "The market should open very positively, with the most liquid stocks getting a boost," said Antonio Machado, a trader at Opportunity brokerage in Rio de Janeiro. Brazil's benchmark stock index (INDEX:$BVSP.X) closed at a four-month high on Friday after gaining 1.45 percent to 17,598. That's its highest level since March 31. The gain came before the Central Bank decided to cut the key lending rate to 17 percent from 17.5 percent, after cutting rates June 20 to their lowest level since 1994. Telecommunications shares like Telemar (SAO:TNLP4), the index's second most heavily weighted stock, Tele Celular Sul (SAO:TCSL4) and Brasil Telecom (SAO:TCSP4), which rallied on Friday, may extend gains. When Brazil's market posts sharp gains, investors tend to pick out the most liquid stocks that are easy to buy and sell in a bid to lock in quick profits, traders said. Shares in oil company Petrobras (SAO:PETR4) may trade heavily on Monday as the government starts selling 18 million common shares in the company. *The Bovespa index closed the week up 5.2 percent and with a gain of 3 percent since the start of the year. katherine.baldwin@reuters.com)) Copyright 2000, Reuters News Service