Emerging Mkt Shrs In NY: Brazil Dn On Political Worries
Dow Jones Newswires
July 13, 2000
NEW YORK -- Emerging market shares trading in New York are taking their cue from domestic political considerations Thursday, with Brazil shares mostly down because of the possibility of a political scandal.
Mexican shares are mostly higher, aided by a strong industrial production report on Wednesday, though volumes have thinned as post-election euphoria has waned.
Brazil's telecommunications sector is bearing the brunt of the slide, one trader said, because it is Brazil's most liquid. But volumes are light, the trader said, and no clear trend has been established.
Embratel Participacoes (EMT) is down 7/16, or 1.9%, at 22 9/16. Telecomunicaoes Brasileiras (TBH), or Telebras, is down 1 1/8, or 1.14%, at 97 3/4.
At 16:15 GMT, Brazil's key Bovespa index was down 117.88, or 0.69%, at 16,935.50.
Investors started taking defensive positions in Brazil earlier this week after corruption accusations surfaced against a former secretary-general of the presidency. While concerns appear to be waning, some are worried the allegations could spill over to other top officials.
In Mexico, sentiment remains strong, but the market has had its rally and needs further news about the incoming government of President-elect Vicente Fox, one trader said. Fox's economic policies and Cabinet choices, plus a sense of how the outgoing PRI will cooperate with the new government, will provide the next impetus, the trader said.
Shares of Mexico's bellwether, Telefonos de Mexico (TMX), or Telmex, are up 1 1/4, or 1.94%, at 65 9/16. Mexico's key IPC index was up 51.76, or 0.70%, at 7468.10 at 1615 GMT.
Cemex (CX), which earlier Thursday announced its participation in a pan-regional e-procurement marketplace, is up 1/8 at 25 9/16.
Turkcell (TKC), meanwhile, the Turkish cellular phone company that debuted Tuesday on the New York Stock Exchange, is up 1/16, or 0.35%, at 18, on volume of almost 1.8 million shares.
Hong Kong-based ASAT Holdings Ltd. (ASTT), a semiconductor testing company that began trade on the Nasdaq this week, is down 1/8, or 1.18%, at 10 1/2, continuing its fall from its $12 issue price.
Among other Asian offerings, SK Telecom Co Ltd (SKM) is down 3/8, or 0.91%, at 40 5/8. Investors have taken profit after shares broke through 40 Wednesday for the first time in several weeks.
-By Emmet Linn, Dow Jones Newswires; 201-938-5692; emmet.linn@dowjones.com |
