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

To: Art Baeckel who wrote (21176)	7/28/2000 7:54:22 AM
From: Art Baeckel	Read Replies (1) \| Respond to of 22640

Brazil stock index end down as Nasdaq weighs again Reuters Company News - July 27, 2000 17:56 Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Jump to first matched term By Nicholas Winning SAO PAULO, July 27 (Reuters) - Brazil's benchmark Bovespa stock index closed in negative territory on thin volume on Thursday after weakness of the technology-laden U.S. Nasdaq index again weighed on the market. The Bovespa ended 1.01 percent lower at 16,949 giving away meagre early gains. The Nasdaq added to Wednesday's losses with a 3.65 percent fall. "In that scenario, the more liquid stocks are likely to get the most damage and that means the telecoms," said one dealer at a Sao Paulo brokerage. Among the heavyweight telecom stocks, Telesp lost 4.9 percent to 27.2 reais, Telemar fell 2 percent to 44.9 reais, while Embratel lost a quarter of a percentage point to close at 38.4 reais. Shortly before the open, Luxembourg-based satellite operator SES announced it was paying $135 million in cash for a 20 percent stake in Embratel satellite unit as a way of gaining a foothold in the Americas market. Brazilian banks, which buoyed the market to a positive close on Wednesday, stayed in positive territory longer than the telecoms, but eventually succumbed to the selling pressure. Brazil's biggest private bank Bradesco slipped 1.39 percent to 15.63 reais, while the No. 2 bank Itau went further with a 1.8 percent drop to 168.01 reais. The losses came despite a report from Moody's Investors Service that Brazil's banking system was stable with an average financial strength rating close to D+. The report said Moody's "expected the process of bank consolidation to intensify in the next months", which would give way to sounder institutions. The exception in the sector was state-owned Banespa bank, which had lost a third of its price value since April, but has now gained 4.37 percent to 50.10 reais. The stock began to rally on Wednesday after the market took heart from news the supreme court was recommending lifting several injunctions that have delayed the bank's privatisation. Elsewhere on the Bovespa, market heavyweight Petrobras slipped 1.8 percent to 48 reais in a falling market. The state oil giant would extend a share offer worth more than $4.4 billion to August 7 following pressure from trade unions and banks, the government bank handling the sale said. Petrobras hopes to sell 28.5 percent of voting stock -- or 16.6 percent of the total capital -- to investors in Brazil and the United States in what amounts to the country's biggest public offering. The Bovespa is up 1.3 percent in July, but is down 0.8 percent since the start of the year. Thursday's trading volume of 565 million reais was marginally higher than Wednesday's.