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

To: Steve Fancy who wrote (8314)	9/19/1998 12:05:00 AM
From: Steve Fancy	Respond to of 22640

Brazil shares end Reuters, Friday, September 18, 1998 at 18:21 Dollar outflows slowed to $207 million Thursday and were seen up at $450 million Friday, still way down when compared to the $1.5 billion a day that had been hemorrhaging from Brazil's commerical and floating currency markets last week. Traders said they were hoping for a bit of a breather on the international scene in order to focus on Telebras and the 12 spin-off companies --that are to start listing Monday-- formed when the teleco was privatized in July y. "We could see the Telebras holding go shooting up while companies in the north and northeast go down," one trader said. "The rest depends on how the Dow behaves." SAO PAULO, Sept 18 (Reuters) - Brazilian shares closed Friday in positive territory as dollar flight slowed after a bumpy week where the market was jolted up and down by news of possible international assistance for the battered economy. Telebras shares led the march upward Friday as investors covered positions with an easing of dollar outflows giving confidence. "Few investors want to risk being short next week because we don't know what's going to happen and they're supporting the Telebras price," one trader said. Sao Paulo's key Bovespa (INDEX:$BVSP.X) index surged in late trade to close 4.31 percent higher at 6,710 points. Telebras (SAO:TELB4) preferred surged up 5.23 percent to 86.50 reais at the close, but still well down from the 144.50 reais the shares were trading at the day after privatization. On Monday, they will be exchanged in a 12-for-one swap for each of the spin-off companies. Traders said they expected a flurry of trading as investors dumped unpopular spin-offs for the favored three fixed-line companies and the two cellular operators serving Brazil's biggest cities. Analysts said it could all be a storm in a teacup if Brazil's economic picture did not measurably brighten. "Every time I mention Telebras and which companies are good buys, investors say 'but it's in Brazil'...They just want to talk about the economy," one analyst at a foreign bank said. Brazil's other blue-chip shares also closed Friday with gains, although the battered Bovespa index was still down 33 percent since the start of the year. Petrobras (SAO:PETR4) preferred ended up 3.91 percent at 119.50 reais, while Vale do Rio Doce (SAO:VALE5) was 3.78 percent higher at 19.20 and Eletrobras (SAO:ELET6) was up 1.65 percent at 24.60. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8314)	9/19/1998 12:06:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Cardoso says Brazil would turn to IMF if needed Reuters, Friday, September 18, 1998 at 21:19 RIO DE JANEIRO, Sept 18 (Reuters) - President Fernando Henrique Cardoso said on Friday that Brazil would appeal to the International Monetary Fund "when and if" it became necessary to protect the country's battered currency. With an election less than a month away, Brazilian officials have been carefully side-stepping mention of the politically sensitive issue of accepting IMF help. They have been saying Brazil is in contact with international financing agencies about crisis prevention rather than rescue plans. Brazil has been spiralling into economic crisis as investors, panicked after Russia's devaluation, have been pulling out of emerging markets in droves. Dollar flight from Brazil was averaging $1.5 billion a day last week, although it had slowed to a trickle by Thursday as talk of an international aid package intensified. Many analysts in Brazil say that outside cash is essential to the defence of the real currency, but Cardoso would like to avoid appearing in need of the IMF. But when pressed by reporters Friday, Cardoso conceded that it was better to have a cushion of international funds available to help protect the real. "The country is going to appeal to the Fund when and if it is needed," Cardoso said after meeting local leaders on a campaign trip to the Amazonas region. Brazilians harbour painful memories of how the IMF intervened to help Brazil after Mexico declared a debt moratorium in 1982. tracey.ober@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8314)	9/19/1998 12:11:00 AM
From: Steve Fancy	Respond to of 22640

Brazil Ctrl Bk Official Says Intl Reserves At $49 Bln Dow Jones Newswires SAO PAULO -- A top Brazilian Central Bank official said late Friday that the country's international reserves stand at around $49 billion, the Estado news agency reported. International Affairs director Demosthenes Madureira de Pinho Neto said that the level of reserves remains "comfortable" considering the amount of Brazilian company debt due to mature on international markets before the end of the year. The monetary authority official pegged this amount at between $15 billion and $16 billion. Brazil's foreign reserves have fallen from $70.21 billion at the end of July, as foreign investors have fled Brazil in fear that market turmoil would spark a full-blown financial crisis.

To: Steve Fancy who wrote (8314)	9/19/1998 12:14:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil Treasury To Resume Floating-Rate Debt Auctions Tues Dow Jones Newswires RIO DE JANEIRO -- The Brazilian Treasury will resume its weekly debt auction Tuesday, after canceling this week's offering because of ongoing market volatility, officials said Friday. On behalf of the Treasury, the Central Bank Tuesday will offer 3.5 million floating-rate bills known as LFTs. The bills have a face value of 1,000 reals (BRL) ($1=BRL1.18). Another lot - of 600,000 LFTs - will be kept by the Central Bank, which will use the bills to conduct its monetary policy. The bills mature June 16, 1999. -By Geraldo Samor; 55-21-580-9394; gsamor@ap.org