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

To: dougjn who wrote (8771)	10/2/1998 6:27:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs surge as goverment seen buying stocks Reuters, Friday, October 02, 1998 at 17:00 SAO PAULO, Oct 2 (Reuters) - Brazilian shares surged 7.53 percent at Friday's close fueled by gains on Wall Street and as the government was seen buying stocks to boost the market ahead of elections, traders said. "There is no doubt that there's government intervention forcing stocks up," a trader at a local brokerage said. "Stocks are also rising on the gains on Dow Jones and other positive indicators." Sao Paulo's key Bovespa index closed up at 6,410 points, accompanying an almost 2 percent rise on Wall Street and gains throughout Latin American bourses. Traders said the government boosted share prices by intervening via Brazil's National Development Bank and the state-owned Banco do Brasil to buy shares. The BNDES denied the speculation. "The market was driven by the rise in Dow Jones and a true 'chapa branca' operation on the eve of elections," a trader said, referring to government intervention. Government cars have white license plates, or 'chapas brancas.' References by Treasury Secretary Robert Rubin to financial aid for Latin America and comments by Central Bank president Gustavo Franco in New York also boosted shares, traders said. The government was seen wanting to intervene in the markets on the last trading day before Sunday's elections to fuel optimism. Trading was light with shares worth 399 million reais trading hands. Among blue-chip stocks, Telebras receipts (SAO:RCTB40) surged 10.98 percent, closing up at 82.90 reais. Energy company Eletrobras preferred (SAO:ELET6) jumped 6.22 percent to close up 23.90 reais. State-owned oil company Petrobras preferred (SAO:PETR4) closed up 5.41 percent at 117 reais and iron ore miner Cia Vale do Rio Doce preferred (SAO:VALE5) closed up 10.12 percent at 18.5 reais. shasta.darlington@reuters.com)) Copyright 1998, Reuters News Service