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

To: Steve Fancy who wrote (8365)	9/21/1998 5:05:00 PM
From: JC Reddy	Read Replies (1) \| Respond to of 22640

The last trade was at 70 5/8 at 17:01. 70 1/4 x 71 1/16

To: Steve Fancy who wrote (8365)	9/21/1998 5:15:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Bovespa (INDEX:$BVSP.X) closes off on global losses Reuters, Monday, September 21, 1998 at 16:55 SAO PAULO, Sept 21 (Reuters) - Brazilian shares closed off 3.87 percent on Monday as President Bill Clinton's sex scandal videotape unnerved markets already concerned over declines in global bourses, traders said. "The market was basically all over the Clinton testimony," a trader at a local brokerage said. Sao Paulo's key Bovespa index closed off at 6,450 points, paring sharp losses of more than 7 percent in morning trade as equities on Wall Street showed a slight rebound. "There wasn't anything new in Clinton's testimony as had been thought," a trader said. Clinton's videotaped grand jury testimony in the White House sex scandal was aired on international television on Monday. Investors had been concerned that more details could be revealed that would increase chances for an impeachment. "It's a relief there was nothing new," a trader on Wall Street said. Some 275.8 million reais traded hands on Monday, down sharply from heavy daily trade of over 600 million reais in recent sessions. Telebras shares were replaced on Monday by stock in the 12 companies that were split off and privatized on July 29. Telebras receipts (SAO:RCTB40), the security that allows shareholders to trade the 12 companies that replaced Telebras as a single basket of shares, was one of today's most heavily traded issues. It closed at 83.50 reais, down 3.47 percent using Telebras preferred Friday close for comparison. Of the 12 companies that replaced Telebras and began trade on Monday, Telesp Participacoes (SAO:TLPP4) was the most active, closing off the day at 29 reais. Among blue chips, Petrobras preferred (SAO:PETR4) ended off 2.93 percent at 116 reais, while Eletrobras preferred (SAO:ELET6) closed off 7.72 percent at 22.70 reais. Iron ore miner Cia Vale do Rio Doce (SAO:VALE5) closed off 3.65 percent at 18.50 reais. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8365)	9/21/1998 5:16:00 PM
From: Steve Fancy	Read Replies (4) \| Respond to of 22640

Emerging mkt debt climbs on better Brazil outlook Reuters, Monday, September 21, 1998 at 16:58 NEW YORK, Sept 21 (Reuters) - Emerging market debt prices climbed on Monday on renewed hope that Brazil, Latin America's bellweather economy, would be able to tide a financial crisis, at least until after the elections scheduled for Oct 4. "Some calm has returned to the market...as panic about something really bad happening in Brazil is gone," said John Welch, chief economist for Latin America at Banque Paribas. Higher short-term interest rates in Brazil and an informal understanding for a stand-by multilateral package from the International Monetary Fund, the Inter-American Development Bank (IADB) and the World Bank has boosted Brazil's markets. Brazil has been fighting against large outflow of capital that has brought down foreign exchange reserves to around $50 billion from $70 billion this summer. "The possibility of a reasonable stand-by line of credit out of Washington - with the IADB, IMF and the World Bank" is providing support to Brazilian bonds, Welch said. Moreover, technical factors are providing support for bench mark securities including the "C" <BRAZILC=RR> and the shorter-maturity IDU bonds, traders said. Wall Street dealers are short the securities while Brazilian institutions such as the Banco de Brazil are long the bonds. As traders either borrow or buy the bonds to close out short positions, the dollar-denominated bonds have robounded in price, traders said. Brazil "C" bonds were up 1-5/8 to 61-3/8 and Brazil IDUs were up 1/2 point to 84-7/8. Meanwhile, an IMF official in Washington said capital flows into emerging market countries have slowed to a trickle: $2.5 billion in August, down from $17.3 billion in July, said Charles Adams, IMF deputy chief economist. Meanwhile, in Russia, Mikhail Zadornov, the acting Finance Minister, promised foreign investors the same treatment as domestic creditors in the payment of $40 billion of frozen government debt. Russia's benchmark PRIN bonds <RUSPRIN=RR> were marginlly higher by 1/2 point, but still trading at 7-3/8, a level that is pricing in the possibility of default, traders said. Copyright 1998, Reuters News Service