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

To: Steve Fancy who wrote (1629)	4/14/1998 6:55:00 AM
From: EPS	Read Replies (1) \| Respond to of 22640

Agencia Estado: Today was a good day for local stock exchanges. In Sao Paulo, the Bovespa closed at a record high of 1.22% and in Rio, the BVRJ ended higher by 1. 15%. Not even the fact that Telecommunications minister, S‚rgio Motta, was replaced by his ministry's executive secretary, Juarez Quadros, due to the former's deteriorating health, seemed to affect local stock trading. Players understood the move as a sign that the government is willing to keep up with the Telebr s privatization schedule. This scenario was later confirmed with the appointment of the president of the National Development Bank (BNDES), Luis Carlos Mendon‡a de Barros, as S‚rgio Motta replacement at the head of the special committee supervising the privatizations occurring in the telecommunications sector. The Ibovespa index to closed up 1.22% at 12,120 points (Ibovespa/US$ closed higher by 1.92%). Trading volume was at US$514.634m with some 27.857bn shares having changed hands. The Rio de Janeiro Stock Exchange Index (IBV-RJ) closed higher by 1.15% at 42,868 points (IBV/US$ closed up 1.12%). Among the blue chips, Telebr s PN/US$ ended up 2.22%. Eletrobr s ended lower by 2.38%. Petrobr s PN/US$ finished up 1.01%. CVRD PN/US$ closed higher by 2.10%. Usiminas finished up 0.52%. After last Wednesday's Central Bank (BC) 0.09% adjustment in the inner-band, allowing the Real to range between R$1.1390 (floor)/R$1.1440 (ceiling) to the US dollar, the market was expecting a strong dollar inflow today. As neither a large dollar inflow nor a Central Bank intervetion in the market occurred, analysts saw the picture as suggesting that either the market had managed to absorb the excess liquidity or it was to surprise players by posting a deficit. At roughly 4 pm ET, the forex market was registering a slight surplus of US$150m. Exports were amounting to US$219m, above imports, which were totaling US$76m. Financial inflow was at US$250m, above outflow at US$243m. Traders were also commenting on declarations by Finance Minister, Pedro Malan, that if proven necessary, the government would take steps to inhibit the flow of short-term foreign capital into the country. The US commercial dollar Ptax ended at R$1.1397/R$1.1389 from R$1.1394/R$1.1386 registered last Wednesday.