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

To: EPS who wrote (1630)	4/14/1998 11:50:00 AM
From: EPS	Read Replies (1) \| Respond to of 22640

Agencia Estado: Traders continue to believe in a calm but positive session today, mainly due to pre-options maneuvers scheduled to take place next 20th. As a result, Brazilian stocks are to trade flat in thin trade. However, good news coming from the domestic front -- such as the replacement of Telecommunications minister S‚rgio Motta by his ministry's executive secretary, Juarez Quadros, a person truly linked to the privatization process -- can change this scenario during the day. Players understood Motta's replacement as a sign that the government is willing to keep up with Telebr s privatization. Other news, such as the privatization tomorrow of the Sao Paulo-owned electric utility Eletrobr s in Bovespa and an eventual reduction in interest rates expected to occur after the Central Bank's Economic Policy Committee (Copom) meeting scheduled for this afternoon, should also aid boosting local stock exchanges. In the international front, European markets trading higher is also a factor seen as very positive by traders. The Ibovespa index is now up 0.65% at 12,199 points. Trading volume is at R$179.400m with some 7.767bn shares having changed hands. The Rio de Janeiro Stock Exchange Index (IBV-RJ) is up 0.59% at 43,121 points. Telebr s PN/US$ higher by 1.37% at R$147.50. Eletrobr s also up 0.37% at R$53.90. CVRD down 0.35% at R$28.60. The market, as it happened yesterday, continues to expect a strong dollar inflow today, 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. Traders are still processing Finance Minister Pedro Malan' comments that, if proven necessary, the government would take steps to inhibit the flow of short-term foreign capital. They very much expect the day ahead can bring answers to their questions. The US commercial dollar Ptax is now trading at R$1.1401/R$1.400. (By Paulo Monteiro)