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 (361)	11/10/1997 7:45:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil shrs dash early gains, hit by profit-takers Reuters, Monday, November 10, 1997 at 17:42 SAO PAULO, Nov 10 (Reuters) - Brazilian shares erased nearly all their early gains by late afternoon Monday, as investors lost enthusiasm for the new austerity plan announced by the government and profit-takers swooped in, dealers said. "At first, the market reacted well to the measures but now it is evaluating the medium and long term impact and you can't be very optimistic. People are predicting a recession," said Marcelo Porto of Concordia brokerage. Sao Paulo's 51-share Bovespa index (INDEX:$BVSP.X), which had risen 4.9 percent shortly after the open, was up a scant 0.28 percent by 1704 local/1904 GMT, an hour before closing. Volume remained thin at 432.5 million reais ($393.2 million) as many players stayed away on lingering doubts about the stability of Brazil's financial markets despite a 51-point package of measures aimed at shoring up the real currency. After rising on initial opening enthusiasm over the plan, investors lost enthusiasm quickly, and day-traders began taking profits late in the afternoon as weak volume made it next to impossible to support the early gains, dealers said. While the immediate impact of the measures will be positive and restore some confidence, the moves could spark a recession that would likely cap stock prices in the medium and long-term, they said. "Politicaly, it is good, but this package cannot be considered good for the bolsa. It's recessionary," said a broker with local Geral do Comercio brokerage. Nonetheless, the Bovespa may still end the session in the black as investors come in ahead of the close to snap up bargains, brokers added. The profit-taking was led by benchmark Telebras preferred (SAO:TEL_.P), which had erased all its gains for the day before rising again to stand 1.4 percent higher at 108.50 reais. Eletrobras preferred B (SAO:ELE_P.B), among the most stable of blue chips, was up 3.09 percent at 500 reais, roughly where it had been all day. Petrobras preferred (SAO:PET_.P) was up 2.27 percent at 225 reais while Cia Vale do Rio Doce preferred (SAO:VAL_.P) was off 0.05 percent at 20.70 reais. --E-mail: james.craig@reuters.com Copyright 1997, Reuters News Service

To: Steve Fancy who wrote (361)	11/10/1997 7:54:00 PM
From: Steve Fancy	Respond to of 22640

Brazil needs more dramatic action - Mobius Reuters, Monday, November 10, 1997 at 18:10 NEW YORK, Nov 10 (Reuters) - Brazil needs more dramatic action than its $18 billion budget savings plan to help ease investors' worries about its economy, investment guru Mark Mobius said Monday. He told Reuters President Fernando Henrique Cardoso should speed up privatization of Brazil's vast state sector to boost confidence quickly in Latin America's biggest country. "I don't think it's enough, frankly. I don't think what they are talking about will do it in the short term," Mobius, head of the $14 billion Templeton Emerging Markets Group, said in a telephone interview from Rio de Janeiro. "The short term is now. They have to get movement immediately, not in six months, not in a year." He said investors in Brazil should stick to big state-owned companies, such as telephone holding Telebras SA (SAO:TEL_.P) and utility company Eletrobras SA (SAO:ELE). Brazil announced an $18 billion package of tax hikes and spending cuts as a way to support its currency, the real. It has been shaken by worries that it might be devalued and lead to market turmoil like that unraveling Asian markets. Mobius said Asia showed that once investors got scared no market was safe. "Things can get very bad. That's why I say that a dramatic action can be ... a very positive thing," said Mobius, who is based in Singapore. Cardoso was "trying to pick up scraps" instead of making a bold stroke by raising billions of dollars and increasing efficiency through the sale of state companies, he said. He said Brazil was moving in the right direction, "but in this day and age with (international money) flows, there will be initial euphoria and then (investors) will start looking at the numbers more closely." Copyright 1997, Reuters News Service