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

To: Steve Fancy who wrote (556)	12/12/1997 2:01:00 PM
From: Steve Fancy	Respond to of 22640

Friday December 12, 9:49 am Eastern Time Brazil shrs higher in early trade on overseas calm SAO PAULO, Dec 12 (Reuters) - Brazilian shares were firmer in the first 25 minutes of trade Friday, recouping some of their recent heavy losses, helped by a relatively settled performance on Asian stock markets, brokers said. The Bovespa index (.BVSP) of the 51 most traded stocks was up 2.55 percent, or 232 points, at 9,341, with benchmark Telebras (TEL_p.SA) leading the rally. Telebras rose 3.01 percent to 116.40 reais. ''Asia looked calmer, Europe improved, and we are following the trend,'' said a senior trader. Analysts said the successful privatization of power firm Cia Eletrica do Rio Grande do Norte (Cosern) earlier today also helped lift market sentiment. A group led by Spanish-owned Coelba (CEE.SA) bought the utility for 676.4 million reais ($609.4 million), a 73.6 percent premium, in an auction on the Rio de Janeiro bolsa. ''The high premium paid for Cosern reinforces the idea that foreign confidence is picking up,'' said another trader, referring to recent market worries over Brazil's economic prospects as a result of financial instability in Asia. At the opening, the key Bovespa index was up 29.3 percent on the year, well below its mid-July peak, when it was up more than 90 percent.

To: Steve Fancy who wrote (556)	12/12/1997 2:07:00 PM
From: Steve Fancy	Respond to of 22640

Foreign investors returning to Brazil equities Friday December 12, 12:16 pm Eastern Time BRASILIA, Dec 12 (Reuters) - Foreign investors have begun returning to Brazilian equities after a $1.16 billion net outflow in the month of November, the head of the Central Bank's economics department Altamir Lopes said Friday. Lopes told reporters there was a net inflow of $425 million in portfolio investments held by foreigners during the first 11 days of December. Of that total, American Depositary Receipts (ADRs) accounted for $421 million with the remaining $4 million being invested on stock exchanges in Brazil. Lopes said the predominance of ADRs suggested foreign investors were wary of a risk of a devaluation in Brazil. There was also a net foreign capital inflow of $20 million in fixed-income funds between December 1-11. Lopes said the near doubling of Brazilian interest rates at the end of October had brought back foreign investors to fixed-income funds which had shown net outflows in eight of the first 10 months of 1997.