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

To: Steve Fancy who wrote (6818)	8/18/1998 5:58:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil shares recover, but still jumpy on Russia Reuters, Tuesday, August 18, 1998 at 17:38 RIO DE JANEIRO, Aug 18 (Reuters) - Brazilian stocks picked up a bit in late trade to close 0.38 percent higher Tuesday, but traders said the rally was shaky because of ongoing nervousness over Russia's economic crisis. "We're still nervous," one local trader said. "The market is rallying a little bit, not a lot, because volume's too thin. But we're seeing some foreigners on the buy side." Sao Paulo's Bovespa index (INDEX:$BVSP.X) of 58 top shares ended 33 points higher at 8,643 points. Traders said there was little room for Brazilian markets to fall further and prices should stabilize at these levels. "The local news is totally positive to neutral, we're just waiting out the international situation," the trader added. Other dealers said Wall Street optimism was lifting the cloud over Russia, giving fresh life to the Brazilian market. Volume was 623.7 million reais ($531 million) and expected to swell Wednesday with a continued light rally. "The market is perceiving that Brazil is different from Russia. The factors that affect Russia don't necessarily affect us," another trader said. The much-watched dollar-denominated Brazilian C bond <BRAZILC=RR> also recovered, giving shares an added boost. C bonds, widely regarded as an emerging market benchmark, gained 1.6 points to 67.000 after plunging more than five points Monday soon after Russia's news. Brazilian stocks brushed off U.S. President Bill Clinton's mea culpa in the White House sex scandal with traders saying it had been more of a factor in Monday's rocky trade. Most blue chips ended with losses, but Telebras preferred (SAO:TELB4), which accounts for half of the market's volume, closed 0.9 percent higher at 111.70 reais. Petrobras preferred (SAO:PETR4) ended down 0.56 percent at 192.50, while Eletrobras (SAO:ELET6) fell 3.28 percent to 29.50, and Vale do Rio Doce (SAO:VALE5) lost 1.03 percent to 19.30 reais. tracey.ober@reuters.com)) Copyright 1998, Reuters News Service