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

To: Steve Fancy who wrote (7355)	9/2/1998 2:21:00 AM
From: djane	Respond to of 22640

EU telecoms offer safe havens, a few bargains [Info on TBR value] Tuesday September 1, 7:26 pm Eastern Time By William Boston BONN, Sept 1 (Reuters) - Europe's biggest telecoms companies are looking more and more like islands of stability in an ocean of market turmoil, equity analysts said Tuesday. Former monopolies that still hold sway over their home markets like France Telecom (FTE.PA), Germany's Deutsche Telekom AG (quote from Yahoo! UK & Ireland: DTEG.F) and British Telecommunications Plc(quote from Yahoo! UK & Ireland: BT.L) have especially proven to be safe havens in rough times. ''The impression that I have is that the ones that have risen were companies like BT, France Telecom or Deutsche Telekom, while the ''Club Med'' group Telefonica and Portugal Telecom have fallen,'' said John Clarke at Daiwa in London. Telecommunications stocks traditionally have been seen as relatively immune to the types of shocks that have sent stock markets plunging and still provide earnings potential. ''They have the golden combination of growth prospects, while not being sensitive to currency fluctuations and the Asian flu,'' said Clarke. But some analysts questioned the view that telecommunications remained a defensive play when other sectors were being rocked by cyclical shifts. ''Telephony volumes do show a correlation with GDP,'' said a London analyst who asked not to be named. ''It's more a barometre for the economy than a defensive investment.'' With the European telecoms sector price earnings ratio of around 23, some companies that recently seemed a bit expensive were now looking more attractive, analysts said. Before the sharp correction on share markets, Deutsche Telekom's PE was 25.94, according to data contained in Reuters Equities 3000. BT had a PE of 23.68 and France Telecom of 29. Jonathan Shantry of Credit Lyonnais noted that the former monopolies remained stable because their domestic markets were not subject to great volatility and were reasonably predictable. ''Stocks like Deutsche Telekom and British Telecom, with yields less than two percent below bond yields do okay,'' he said. ''We've told people we see no particular reason to buy, but also no strong reason to sell.'' Pierre Boucheny, Paris-based analyst with Bank Julius Baer, expected France Telecom's PE to fall steadily from 28 this year to 27.6 in 1999 and 25.5 in 2000. He did not see much upside potential in the France Telecom shares, which closed up 5.42 percent on Tuesday at 457 francs. ''But I have a positive opinion of France Telecom. Regarding its relative performance, it has done very well,'' he said. If the industry's heavyweights seem a safe shelter at the moment, bargain hunters will be looking south toward Telefonica and Portugal Telecom, analysts said. Shares in those companies have been hammered because of concerns about their respective investment in Brasil telecommunications group Telebras. Portugal Telecom on Tuesday sought to calm investor fears. ''PT's management believes that the outcome of the Telebras privatisation auction was favorable for the company and its shareholders. PT acquired the best assets in Brazil and Latin America,'' the company said in a statement. PT shares closed down 150 escudos at 8,100, well off the year high of 11,525, but back off its low of 7,100 on Friday. ''The combination of the local market getting hit and the close connection to Latin America has hit the Iberian telecoms,'' said Shantry. But is time to take another look at these stocks? ''It's a question of timing,'' said Shantry. ''You could get in today and find that you could have gotten in tomorrow for five percent less.'' Related News Categories: international, US Market News Help Copyright c 1998 Reuters Limited. All rights reserved. Questions or Comments?

To: Steve Fancy who wrote (7355)	9/2/1998 10:10:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil shrs seen opening firm but jumpy throughout Reuters, Wednesday, September 02, 1998 at 09:34 SAO PAULO, Sept 2 (Reuters) - Brazilian stocks are poised to open firmer on Wednesday as a calmer external outlook and improving world markets buoy optimism in local bourses, but traders may still be jumpy, depending on New York's performance. The 58-share Bovespa index (INDEX:$BVSP.X), which posted a handsome 6.87-percent gain on Tuesday to close at 6,917 points, is seen holding on to its highs at least at the start, brokers said. "It will open firmer, but prices will still depend heavily on Wall Street throughout the session," said one trader at Banco Santander in Sao Paulo. The index was still down 32 percent so far this year by Tuesday's close. Some brokers said Tuesday's rise was in part due to foreigners returning to the market, snapping up some cheap Brazilian stocks. The market's top blue-chip issue Telebras preferred (SAO:TELB4), which is often sought after by foreigners as well as local investors, jumped 6.71 percent to 89.1 reais. Brokers said news on Telebras late Tuesday that 12 new firms spun off recently from the telephone holding company Telebras would start trading from September 15, should help activity in the market. The 12 firms were created prior to Telebras' privatization auction held on July 29. Investors had been awaiting the units' debut on the local bourse and New York Stock Exchange. "Starting trade in the companies would help the market because it prevents a concentration in Telebras, and gives investors a wider selection of shares," said a trader at local Indusval brokerage. Telebras currently accounts for about 50 percent of trade on the Sao Paulo bourse. Investors are now expected to hunt down other blue-chips such as Petrobras (SAO:PETR4), Eletrobras (SAO:ELET6), Telesp (SAO:TLSP4) and Cemig (SAO:CMIG4), the trader said. Bluechip activity Tuesday: Telebras (SAO:TELB4) up 6.71 pct at 89.10 reais Petrobras (SAO:PETR4) up 10 pct at 132 reais Eletrobras (SAO:ELET6) up 16.61 pct at 20.99 reais Vale do Rio Doce (SAO:VALE5) up 4.49 pct at 16.30 reais Bovespa: * Tuesday: up 6.87 pct at 6,917 points * Week: up 2.5 pct * Month: up 6.8 pct * Year-to-date: down 32.1 pct SELIC (open): 2.085 pct Dollar/Real (open): 1.1775 per dollar YESTERDAY'S STORIES 1/8 1/4SUR 3/8 ***** SPOT REAL QUOTES <BRBY> BOVESPA STOCK INDEX (INDEX:$BVSP.X) ELECTRICAL ENERGY INDEX <.IEE> BRAZILIAN ADR PRICES <BR/ADR> BRAZILIAN BRADY BOND PRICES <2LDO> BRAZILIAN DOLLAR FLOW HISTORY <BRFLOW> noriko.yamaguchi@reuters.com))