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 (6866)	8/19/1998 6:44:00 PM
From: Steve Fancy	Respond to of 22640

Brazil stocks focus on Wall St, stumble at close Reuters, Wednesday, August 19, 1998 at 18:05 RIO DE JANEIRO, Aug 19 (Reuters) - Brazilian shares stumbled in late trade Wednesday to close 1.17 percent lower as Wall Street's recent rallies triggered local profit-taking. "The bourse probably opened higher and then afterward there was some profit-taking," one trader said. "We had more sell orders after the Dow Jones went back up." Sao Paulo's Bovespa (INDEX:$BVSP.X) index of 58 leading shares closed 101 points lower at 8542 points with 703.9 million reais in volume traded. Wall Street also ended lower in what traders said was a "breather" after two days of gains. Traders said Brazil's market was still a bit unsteady without enough volume to back any trend. On Tuesday, the Bovespa ended up slightly after being rocked by news of trouble in Russia on Monday and after about two weeks of steep losses. The Brazilian blue-chip shares closed lower Wednesday with Telebras (SAO:TELB4) preferred falling 3.04 percent to 108.30, Petrobras (SAO:PETR4) dropping 1.81 percent to 189.01 reais and Eletrobras (SAO:ELET6) losing 1.02 percent to 29.20. Cia Vale do Rio Doce (SAO:VALE5), the huge mining company, ended 2.59 percent lower at 18.80 reais. tracey.ober@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6866)	8/19/1998 6:48:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Embratel to review local phone charges Reuters, Wednesday, August 19, 1998 at 18:19 SAO PAULO, Aug 19 (Reuters) - Brazil's Embratel, the long-distance and international unit of Telebras SA (SAO:TELB4), plans to increase the rates it charges to local cellular and fixed-line telephone companies, the president of its board said. "The government's regulation for the remuneration of concession-holders did not come out as we expected and we will have to renegotiate it," Luis Fernando Rodrigues told Reuters in a telephone interview. Copyright 1998, Reuters New

To: Steve Fancy who wrote (6866)	8/19/1998 6:49:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

FOCUS-Brazil reserves seen steady despite outflows Reuters, Wednesday, August 19, 1998 at 18:43 By Noriko Yamaguchi SAO PAULO, Aug 19 (Reuters) - Brazil's international reserves are expected to remain stable despite a huge daily net dollar outflow of $963.8 million on Tuesday, Central Bank officials said on Wednesday. "We can assume that the reserves will be maintained at levels around $70 billion," the Central Bank's foreign operations director Demosthenes Madureira Pinho Neto told reporters after a meeting of bank directors in Porto Alegre. Brazil's foreign exchange market on Tuesday registered its biggest daily net drain of the U.S. currency since October 28, when the outflow totaled $2.89 billion. The country was roiled by turmoil in Asian financial markets then. Forex dealers said Tuesday's big one-day outflow was mainly linked to the repayment of short-term loans known as "63 Caipira", which were raised in foreign markets to finance the country's agricultural industry. To assure that the outflows should not alarm investors, the Central Bank's president Gustavo Franco told reporters at the same conference that the outflows were, "completely within expectations due to maturing 63 Caipira. "A decline in reserves of one, five, 10 billion dollars is no problem whatsoever," Franco said. "We know that a good part of what has come into the reserves has come in through the 63 Caipira short-term funds and money that can leave at any time," he added. The short-term loans are put together by Brazilian banks to finance the country's agriculture, but late last year the Central Bank also allowed these funds to be invested in dollar- indexed debt in a bid to attract foreign capital amid Asia's financial crisis. Pinho Neto said a total of $5 billion was expected to flee the country in the next two months because of these loans. On Wednesday, dealers speculated that forex contracts may post a further daily net outflow about $200 million. They said the Central Bank may have intervened in the forex market through federal Banco do Brasil (SAO:BBAS3) to support the local currency, the real, amid these expected outflows. Central Bank officials would not confirm the operations, which have been spotted repeatedly since last week. Meanwhile, Pinho Neto said the recent outflows would be offset by an inflow of about $4.5 billion linked to proceeds from last month's privatization auction of Telebras (SAO:TELB4). The government sold off 12 units spun off from the telephone holding for a total of $19 billion on July 29 and the winning bidders are required to pay 40 percent of the total amount, or about $7.6 billion, this year. Brazil's forex market posted a record daily net dollar inflow of $2.985 billion immediately after the auction on July 31, as investors started paying for their Telebras purchases. International reserves stood at $70.06 billion by the end of June. Of the current reserves, Pinho Neto said: "The level of reserves is comfortable and we will use them as instruments (to protect the currency) if we deem it necessary (amid turmoil in Asian and Russian markets)." Copyright 1998, Reuters News Service