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

To: Steve Fancy who wrote (22425)	7/21/2001 12:57:38 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil stocks rise amid Argentina optimism Reuters, 07/20/2001 18:14 By Nicholas Winning SAO PAULO, Brazil, July 20 (Reuters) - Brazilian stocks rose on Friday as optimism grew that Argentina would push through austerity measures which could ease the risk of a debt default in the recession-hit country, traders said. The Sao Paulo Stock Exchange's benchmark Bovespa (INDEX:$BVSP.X) index rose 2.4 percent to 14,092.3 points, in a broad-based but low turnover rally. Gainers outpaced decliners by 44 to 11 to leave the index 7.6 percent below where it began the year. "The market is stuck to the Argentine market," said Bonval brokerage director Celso Senise. Argentina's benchmark MerVal <.MERV> index rose 4.5 percent amid the same optimism. Telemar (NYSE:TNE), Brazil's biggest fixed-line phone operator and market heavyweight, had a weak day after the firm's president quit under hazy circumstances on Thursday, but made a late bounce to end 0.9 percent firmer at 33.50 reais. State oil giant Petrobras (SAO:PETR4) (NYSE:PBR) shone with continued support from a government bank's sell-out $807 million offer of Petrobras preferred stock despite only offering a slight discount to the market price. Petrobras stock, the second heaviest-weighted share on the index, buoyed the rest of the market with a 4.3 percent gain to 53 reais. Voting shares in Sao Paulo state waterworks company Sabesp (SAO:SBSP3) also stood out with a 8.55 percent gain to 165 reais after the state government announced a global offer of its stock. Traders said sentiment was dictated by optimism Argentina's Congress would pass deeply unpopular austerity measures later after some frantic horse-trading by the government. But they said Monday was another day, and the outlook remained jumpy. In a sign of what Brazilian players have come to expect, the Argentine opposition said shortly after the close it rejected the government's latest revision of austerity measures and wanted changes. "Volatility, with short rallies. The market is dangerous," one trader said. Players said they expected little change in the thin volume going forward as dealers sat on their hands awaiting more stable market conditions. Nevertheless, a report by Goldman Sachs recommended investors raise holdings of Brazilian stocks in their portfolios and cut their exposure to Mexico, expecting an upside on Brazilian equities of 39 percent in the next six months compared to only 18 percent in Mexico. saopaulo.newsroom@reuters.com)) Copyright 2001, Reuters News Service