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

To: Steve Fancy who wrote (8527)	9/24/1998 5:24:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs end sharply down on Wall Street gloom Reuters, Thursday, September 24, 1998 at 17:09 SAO PAULO, Sept 24 (Reuters) - Brazilian shares ended sharply lower on Thursday, giving up nearly half of Wednesday's handsome gains as local shares fell prey to a gloomy equity outlook on Wall Street, brokers said. The blue-chip Bovespa index (INDEX:$BVSP.X) fell 5.99 percent to 6,844 points after dipping as low as 6.4 percent. It soared 11 percent Wednesday after U.S. Federal Reserve Board chairman Alan Greenspan hinted there could be an interest rate cut. "Investors shaved off profits from yesterday's rises after they became nervous about a big fall in the Dow Jones index," said a trader at Banco Marka. Stocks in New York took a beating on Thursday after the New York Fed and banks stepped in to bail out a multi-billion dollar hedge fund Long-Term Capital Management LP. "With this, I think Asian and European markets would start lower tomorrow, meaning it was safer to take profits today," said one local trader. Blue-chip telecom shares were heavily hit, with Telebras receipts (SAO:RCTB40) losing 7.57 percent to 85.50 reais and Tele Centro Sul (SAO:TCSP4) plunging 10.48 percent to 11.10. Eletrobras preferred (SAO:ELET6) fell 9.97 percent to 27 reais, while Petrobras (SAO:PETR4) dropped 5.8 percent to 130. Another liquid issue Vale do Rio Doce (SAO:VALE5) lost 8.76 percent to 17.70 reais. The selling wave also caught on Brazil's dollar denominated C-bonds <BRAZILC=RR>, which are traded in New York. The papers fell 4 percentage points to 61 by 1740 local/2040 GMT. Brokers said Wednesday's buying spree was short-lived as investors were not convinced Brazil would be spared from a global crisis despite a possible monetary easing in the United States and financial support from world lending agencies. Volume had also been low in recent sessions, indicating that long-term investors were still out of action. Shares worth $493 million changed hands on Thursday. In Brazil's currency market, the local currency real ended unchanged from its previous close at 1.1835 on Thursday. A relatively smaller dollar outflow, at an estimated $300 million, soothed market players, dealers said. noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (8527)	9/24/1998 5:26:00 PM
From: Steve Fancy	Read Replies (8) \| Respond to of 22640

Emerging mkt bonds lower as credit concerns rise Reuters, Thursday, September 24, 1998 at 17:13 NEW YORK, Sept 23 (Reuters) - Emerging-market bonds declined two to four points Thursday as the near-failure of a hedge fund escalated credit concerns, traders said. As is often the case in a general market downturn, Brazil's bonds, among the most liquid in the sector, were the worst hit, traders said. Brazil "C" bonds were lower by nearly two points to 62 near the end of trading session, traders said. Market attention was focussed on the bail-out of Long Term Capital Management, the Greenwich, Conn.-based hedge fund run by former Salomon Brothers bond trading chief John Meriwether. As market participants pondered how banks would deal with reducing the leverage in the hedge fund's investments, risk-management officials were busy combing through trading books examining total exposure to hedge funds, traders said. As risk limits are being reduced on dealings with hedge funds, the funds in turn are reducing investments in risky bonds in emerging markets, leading to lower prices. "There is an over-arching concern about credit," said a trader at a European bank. Traders said the default by Russia on its domestic debt has left a scarr on the markets that will take a long time to heal. In the meantime, emerging market bond prices are likely to stay depressed, they said. Copyright 1998, Reuters News Service