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

To: jeremy smith who wrote (6970)	8/21/1998 12:36:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Trading in Brazil shrs suspended due to nosedive Reuters, Friday, August 21, 1998 at 12:32 SAO PAULO, Aug 21 (Reuters) - Trading in Brazilian stocks were suspended for 30 minutes at 1235 local/1535 gmt Friday after global market fears sent local shares tumbling down 10.07 percent. The Bovespa was down 10.07 percent to 7,187 points, hitting its lowest level since January 1997. "Foreigners are selling what they still have left of Brazilian stocks," said one local trader. Global investors were cashing Brazilian equities to make up for the losses posted elsewhere, some brokers said. Major concerns weighing on the Bovespa Friday included worries that Russia's economic troubles may affect Latin America as well as spreading rumours of an impending devaluation of the Venezuelan bolivar, brokers said. Those jitters were reflected in Brazil's currency market, where the real was quoted down 0.09 percent at 1.1750 to the dollar by midday. Forex dealers estimated Brazil's Central Bank intervened in the market via federal Banco do Brasil selling about $500 million in a bid to support the local currency. The banks would not confirm the market speculation, but Banco do Brasil had been rumored to have stepped in repeatedly amid unrest in global financial markets. In the local bourse, top blue chip issue Telebras preferred (SAO:TELB4) sank 7.66 percent to 92.80 reais before the circuit breaker was triggered. Other key shares sank to year lows. Petrobras (SAO:PETR4) plunged 13.97 percent to 154 reais, while Eletrobras (SAO:ELET6) lost 17.71 percent to 22.30 reais. Brazilian debt was also battered, with the dollar-denominated C-bonds <BRAZILC=RR> traded overseas down 4.5 percentage points at 55 bid and nearing their year low of 54. Its global bonds due 2001 <BRAGLBO1=RR> lost a whopping 10.875 percentage points at 82.5 bid. Copyright 1998, Reuters News Service