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

To: Art Baeckel who wrote (21207)	8/2/2000 8:18:57 AM
From: Art Baeckel	Read Replies (1) \| Respond to of 22640

Brazil shares fall hit by Nasdaq,index shuffle rumors Reuters Company News - August 01, 2000 17:25 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 Andrei Khalip SAO PAULO, Aug 1 (Reuters) - Brazilian shares fell 1 percent on Tuesday, undermined by a downturn in U.S. technology stocks and expectations of a shuffle in the local benchmark stock index, traders said. "Trading was nervous today, turnover improved a lot," said Andre Caminada, a senior stock trader at Lloyds Bank in Sao Paulo. "The market is talking a lot about changes in the main index. Many say that some big companies may lose some weighing." The country's Bovespa benchmark index closed 165 points lower at 16,290 points. The market opened with a slight rise and reached a high for the day of 16,591 before erasing its gains on a decline in Nasdaq, the U.S. tech-laden index. A total of 670 million reais ($374 million) worth of stocks changed hands, way above Monday's tiny turnover of 350 million and slightly more than July's daily average of 624 million. One of the companies that traders say could weigh less on the 52-issue Bovespa from the start of September, when a review of the index is expected, is federal power holding Eletrobras , which slumped 6.4 percent to 39.8 reais. Expectations of a bigger index participation drove cable TV and Internet play Globocabo up for most of the day, but the stock finished Tuesday 0.4 percent lower at 2.7 reais on profit-taking, traders said. Telecommunications companies were mixed amid a Nasdaq fall, which traditionally exerts pressure on this high-tech component of the Brazilian stock market. The Nasdaq composite index lost about 81 points on Tuesday. Among the day's biggest surprises were cellular phone firms Tele Nordeste Celular , which rose 7 percent to 5.5 reais, and Tele Celular Sul , which rose 4.8 percent to 6.5 reais. Embratel fixed-line phone giant rose 3.7 percent to 39.4 reais on healthy volume. "Those telecoms that rose today had earlier suffered from a general reevaluation of the sector. Now, when some other telecoms are expected to come up with weak first-half results, this bunch of stocks rose as people put the money in them in order not to leave the sector completely," said one trader. The whole banking sector fell on Tuesday due to profit-taking after a recent upward trend, traders said. Brazil's No. 1 private bank Bradesco fell 2.3 percent to 15.1 reais. Bradesco's main rival, Banco Itau , lost 1.9 percent to 162 reais despite an announcement of a sale of 1 percent of preferential stock to top Spain's savings bank La Caixa. Traders saw little immediate effect from the sale, saying it was only positive in terms of long-term strategic plans. State oil giant Petrobras again fell, this time by 3.1 percent to 45.4 reais with the market speculating about a book-building price for the company's offer to sell 28.5 percent of its voting stock, traders said. The Bovespa index lost 1.6 percent last month, and is now 4.7 percent lower than at the start of the year.