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: CuttotheCore who wrote (7435)	9/3/1998 6:00:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil stocks close down 8.61 pct, a two-year low Reuters, Thursday, September 03, 1998 at 17:09 SAO PAULO, Sept 2 (Reuters) - Brazilian stocks tumbled on Thursday to close off 8.61 percent at a two-year low after Moody's Investors Service downgraded the country's speculative credit rating. "The market was negatively affected by Moody's downgrade," a trader at Tudor Asset Management said. Sao Paulo's key Bovespa index of the 57 most-traded shares tumbled 586 points in its second biggest drop this year to close at 6,219 points. The Bovespa has not closed that low since August 27, 1996. Moody's announced Thursday it was downgrading its ceiling for Brazilian foreign currency bonds and notes to B2 from B1 and the ceiling for foreign currency bank deposits to Caa1. The resulting plunge in Brazilian stocks and the de facto Colombian currency devaluation unnerved investors, dragging U.S. equities down with them, traders in New York said. The Dow Jones slipped 1.29 percent to 7,682.22 reais. Earlier in the day, U.S. Treasury Secretary Robert Rubin said that world financial turmoil has had some spillover effect on Latin America, and that developments in the region were "profoundly important" to the United States. Brazilian bank Banespa (SAO:BESP4) preferred led declining stocks on the Bovespa. The bank's shares plummeted 13.51 percent to 32 reais as a single investor sold a big chunk of stock, traders said. "One investor made a big withdrawal," a trader said. Other big decliners included Telebras (SAO:TELB3) common shares, which fell 13.33 percent to 52 reais and Cesp (SAO:CESP4) utility, which tumbled 11.67 percent to 15.90 reais. Among Blue-chip stocks, Telebras (SAO:TELB4) preferred plunged 10.29 percent to 76.70 reais. Moody's announced Thursday it was downgrading its ceiling for Brazilian foreign currency bonds and notes to B2 from B1 and the ceiling for foreign currency bank deposits to Caa1. The resulting plunge in Brazilian stocks and the de facto Colombian currency devaluation unnerved investors, dragging U.S. equities down with them, traders in New York said. The Dow Jones slipped 1.29 percent to 7,682.22 reais. Earlier in the day, U.S. Treasury Secretary Robert Rubin said that world financial turmoil has had some spillover effect on Latin America, and that developments in the region were "profoundly important" to the United States. Brazilian bank Banespa (SAO:BESP4) preferred led declining stocks on the Bovespa. The bank's shares plummeted 13.51 percent to 32 reais as a single investor sold a big chunk of stock, traders said. "One investor made a big withdrawal," a trader said. Other big decliners included Telebras (SAO:TELB3) common shares, which fell 13.33 percent to 52 reais and Cesp (SAO:CESP4) utility, which tumbled 11.67 percent to 15.90 reais. Among Blue-chip stocks, Telebras (SAO:TELB4) preferred plunged 10.29 percent to 76.70 reais. State-owned oil company Petrobras (SAO:PETR4) tumbled 5 percent to 133 reais and energy holding company Eletrobras (SAO:ELET6) slumped 8.41 percent to 18.60 reais. Iron ore miner Cia Vale do Rio Doce (SAO:VALE5) fell 8.88 percent to 15.40 reais. Shares worth 604.8 million reais traded hands, in line with average daily trading over the last three months. Copyright 1998, Reuters News Service

To: CuttotheCore who wrote (7435)	9/3/1998 6:03:00 PM
From: Steve Fancy	Respond to of 22640

LatAm stocks slump on global woes, eye IMF meeting Reuters, Thursday, September 03, 1998 at 17:09 By Noriko Yamaguchi SAO PAULO, Sept 3 (Reuters) - Major Latin American stock market indices were posting big losses on Thursday, even as government finance officials from around the region met at International Monetary Fund headquarters in Washington, in a bid to prevent further fallout from overseas economic trouble. Traders and analysts said the region's stocks, already pressured by global woes, were now reeling amid new worries that investors may flee Latin America after Colombia announced a de facto devaluation of its currency on Wednesday. Market players worried that neighboring countries may feel pressured by Colombia's move, the first significant change in any Latin American country's exchange rate policy since the Asian crisis hit last year. "Colombia's news is a headache for investors in the region that are already vexed by slumping equity markets in Europe, Asia and the United States," said Cassio Schmitt, senior economist at Unibanco in Sao Paulo. Schmitt said the key to solving the current financial turmoil rested with world economic leaders, and that investors in Latin America were betting on Thursday's IMF meeting among the region's nine main economies. Latin America is susceptible to a growing perception in world financial markets that there is lack of leadership, said Larry Goodman, chief economist at Banco Santander in New York. "The market in part is dependent on the outcome of the IMF summit, whether a clearer and decisive leadership from the G7 leader nations would emerge, quelling concerns surrounding Latin American markets and a possible knock-on effect from Russia and the developed world," he said. In early trade Thursday, MEXICO's stocks floundered with its blue-chip IPC index <.MXX> dropping more than 1 percent shortly after the open. In Washington, attending the IMF meeting, Mexico's Central Bank governor Guillermo Ortiz said the falls were "a reflection of worldwide instability." Mexico's overnight interest rates rose sharply early on Thursday as the Mexican peso tumbled. "It is a problem of contagion," he said of instability spilling into Latin America. Meanwhile, Venezuelan shares were testing their downside with the 15-share IBC index <.IBC> plunging over five percent. Regional analysts said Venezuela would come under the spotlight following the forex policy change in Colombia, which is Venezuela's second largest export market. In Brazil, the Bovespa index (INDEX:$BVSP.X) plunged over four percent by midday. "The market is totally hinging on news from overseas. Some investors are worried that a de facto devaluation in the Colombian currency may put more pressure on Brazil and Mexico's currency," said one Corretora & Doria Atherino trader. But Brazil's currency, the real, was so far weathering any negative impact, trading at around 1.1780 to the dollar. In Argentina, stocks were lower in early trade after declines on Wall Street and in neighboring Brazil. Traders said there was some disappointment in the market that the bounce seen at the beginning of this week had faded. The blue-chip Merval index <.MERV> slipped over 2 percent by midday. Chile's bourse was also slumping by midday, with investors nervously eyeing the fall in Russia's rouble and more trouble in emerging markets. Santiago's IPSA index <.IPSA> of the leading 40 stocks lost over 1 percent after giving up 2 percent on Wednesday. noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service

To: CuttotheCore who wrote (7435)	9/3/1998 6:05:00 PM
From: Steve Fancy	Read Replies (5) \| Respond to of 22640

LatAm stocks slump on global woes, eye IMF meeting Reuters, Thursday, September 03, 1998 at 17:09 By Noriko Yamaguchi SAO PAULO, Sept 3 (Reuters) - Major Latin American stock market indices were posting big losses on Thursday, even as government finance officials from around the region met at International Monetary Fund headquarters in Washington, in a bid to prevent further fallout from overseas economic trouble. Traders and analysts said the region's stocks, already pressured by global woes, were now reeling amid new worries that investors may flee Latin America after Colombia announced a de facto devaluation of its currency on Wednesday. Market players worried that neighboring countries may feel pressured by Colombia's move, the first significant change in any Latin American country's exchange rate policy since the Asian crisis hit last year. "Colombia's news is a headache for investors in the region that are already vexed by slumping equity markets in Europe, Asia and the United States," said Cassio Schmitt, senior economist at Unibanco in Sao Paulo. Schmitt said the key to solving the current financial turmoil rested with world economic leaders, and that investors in Latin America were betting on Thursday's IMF meeting among the region's nine main economies. Latin America is susceptible to a growing perception in world financial markets that there is lack of leadership, said Larry Goodman, chief economist at Banco Santander in New York. "The market in part is dependent on the outcome of the IMF summit, whether a clearer and decisive leadership from the G7 leader nations would emerge, quelling concerns surrounding Latin American markets and a possible knock-on effect from Russia and the developed world," he said. In early trade Thursday, MEXICO's stocks floundered with its blue-chip IPC index <.MXX> dropping more than 1 percent shortly after the open. In Washington, attending the IMF meeting, Mexico's Central Bank governor Guillermo Ortiz said the falls were "a reflection of worldwide instability." Mexico's overnight interest rates rose sharply early on Thursday as the Mexican peso tumbled. "It is a problem of contagion," he said of instability spilling into Latin America. Meanwhile, Venezuelan shares were testing their downside with the 15-share IBC index <.IBC> plunging over five percent. Regional analysts said Venezuela would come under the spotlight following the forex policy change in Colombia, which is Venezuela's second largest export market. In Brazil, the Bovespa index (INDEX:$BVSP.X) plunged over four percent by midday. "The market is totally hinging on news from overseas. Some investors are worried that a de facto devaluation in the Colombian currency may put more pressure on Brazil and Mexico's currency," said one Corretora & Doria Atherino trader. But Brazil's currency, the real, was so far weathering any negative impact, trading at around 1.1780 to the dollar. In Argentina, stocks were lower in early trade after declines on Wall Street and in neighboring Brazil. Traders said there was some disappointment in the market that the bounce seen at the beginning of this week had faded. The blue-chip Merval index <.MERV> slipped over 2 percent by midday. Chile's bourse was also slumping by midday, with investors nervously eyeing the fall in Russia's rouble and more trouble in emerging markets. Santiago's IPSA index <.IPSA> of the leading 40 stocks lost over 1 percent after giving up 2 percent on Wednesday. noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service

To: CuttotheCore who wrote (7435)	9/3/1998 6:09:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's real drops 0.08 pct on dollar outflows Reuters, Thursday, September 03, 1998 at 17:17 SAO PAULO, Sept 3 (Reuters) - Brazil's real closed at 1.1780 per dollar Thursday in the commercial foreign exchange market, down 0.08 percent from Wednesday, amid net dollar outflows, dealers said. Dealers said Banco do Brasil (SAO:BBAS3) was seen intervening throughout the day on behalf of the Central Bank, selling dollars in a bid to prevent the real from weakening. Central Bank officials would not confirm the reported dollar sales. The Central Bank had stepped into the market after Moody's Investor Service downgraded its rating on Brazil's foreign currency debt, worrying already nervous forex players, dealers speculated. The Brazilian forex market had already been put under pressure amid heavy net dollar outflows. The commercial foreign exchange market saw net dollar outflows of $1.36 billion in the first two days of September, according to the Central Bank. At 1700 local/2000 GMT on Thursday, preliminary figures for commercial and financial forex contracts showed a $450 million deficit and dealers said it might turn into a larger deficit at the end of the day when all transactions were registered. Meanwhile, the Central Bank made a regular cut in its mini- band within which the real trades, by buying dollars at 1.1705 and selling at 1.1805 reais per dollar, dealers said. The previous mini-band was set on Monday at between 1.1695 and 1.1795 reais per dollar. Monday's auction marked the seventh time this month the bank has nudged the mini-band lower and represents a 0.09 percent decline. The Central Bank usually shifts the mini-band five to seven times each month. This month, the Central Bank shifted the mini-band 0.60 percent lower, the same as in August. In the floating interbank rate market, the real closed at 1.1810 per greenback, down 0.08 percent in the day. In the parallel market, the real the closed at 1.260 per dollar, traders said. Copyright 1998, Reuters News Service