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: Steve Fancy who wrote (8395)	9/22/1998 12:21:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's forex markets lose $518 million on Monday Reuters, Tuesday, September 22, 1998 at 09:22 SAO PAULO, Sept 22 (Reuters) - Brazil lost another $518 million through its foreign exchange markets on Monday, traders said, as moderate dollar outflows continue despite a huge hike in interest rates. Dollar flight slowed to just under $500 million a day last week after the government boosted interest rates to almost 50 percent. Capital flight came down from a daily average of about $1.5 billion the week before, but shows signs of continuing despite the interest rate hike, traders said. As of Monday, some $15.736 billion had left Brazil through its forex markets in September, draining reserves to below $50 billion. Reserves are considered the government's best defense against a speculative attack. On Monday, $349 million left the country through the commercial forex market, according to the Central Bank, and another $169 million left through the floating forex market. High interest rates and a new fixed-income security pegged to the floating exchange rate have helped slow outflows through the floating exchange rate, generally considered the exit for Brazilian investors. Monday's outflows through the floating forex market were the lowest registered since August 20. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8395)	9/22/1998 12:24:00 PM
From: Steve Fancy	Respond to of 22640

Brazilian shares surge on overseas equity jumps Reuters, Tuesday, September 22, 1998 at 09:49 SAO PAULO, Sept 22 (Reuters) - Brazilian stocks opened sharply higher, with the key Bovespa index (INDEX:$BVSP.X) soaring 3.61 percent in 10 minutes of trade, as investors cheered equity rises in Asia and Europe, brokers said. The Bovespa was trading at 6,682 points. The new market benchmark Telesp Participacoes, (SAO:TLPP4) which emerged as a market-maker following Telebras preferred, jumped 10.34 percent. Trading in 12 units split from Brazil's former telephone holding Telebras started on Monday, and Telesp was becoming the star of the market, brokers said. Investors were also chasing after Telebras receipts (SAO:RCTB40), which allowed players to trade the 12 companies in a single basket. The receipts were up more than 5 percent in very volatile morning trade. "Most activity is in the telecoms today," said one trader at Sao Paulo Corretora. "But rises in Europe and Asia definitely set the scene for a higher opening." In the currency market, Brazil's real was trading at 1.1825 to the dollar by 1030 local/1330 GMT, down 0.08 percent from its previous close. Forex dealers said the real weakened on persistent concerns over dollar outflows. Dealers reported $518 million fled the country's commercial and floating forex markets on Monday, showing the U.S. currency continued to escape Brazil. Separately on Monday morning, the Central Bank carried out its regular auction to lower the currency mini-band, making the real now trade between 1.1740 and 1.1850 reais to the dollar. The previous band was set between 1.1730 and 1.1840. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8395)	9/22/1998 12:39:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Germany Unaware Of Any Immediate IMF Measures For Brazil Dow Jones Newswires BONN -- Germany doesn't have any information about any immediate plans by the International Monetary Fund to create an assistance package for Brazil, a spokesman for Germany's finance ministry told Dow Jones Tuesday. "We don't have any information that the IMF is already active," the spokesman said. Last week, Brazil's Finance Minister Pedro Malan said that Brazil was negotiating a package of a "preventive, not rescue" nature with the IMF. He refused, however, to comment on the possible terms of such a package. The German finance ministry spokesman ruled out any bilateral help from Germany for Brazil but said that IMF assistance for Brazil "is a possibility." However, he also pointed to the IMF's current liquidity problems but said that credit line extensions could be negotiated. Malan reiterated Monday that Brazil won't devalue its currency, the real, and has no plans to impose restrictions on foreign capital outflows. Brazil's international reserves have tumbled to around $49 billion, from over $70 billion at end-July, as foreign investors fled the country fearing market turmoil could produce a full-blown economic crisis. London-based analytical service IDEA will at 930 GMT publish a report relating to impending G-7 action on emerging market turbulence. The report is expected to forecast an impact on financial markets from the turmoil.