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: dougjn who wrote (8913)	10/8/1998 3:30:00 PM
From: Steve Fancy	Respond to of 22640

TABLE - History of Brazil dollar outflows Reuters, Thursday, October 08, 1998 at 15:05 SAO PAULO, Oct 8 (Reuters) - Brazil's foreign exchange markets continue to be plagued by dollar flight as global investors seeking safe haven continue taking U.S. currency out of the country, dealers said. The pace of the outflow has slowed in recent days after one huge dollar inflow was reported on October 1 and another smaller one on October 6. Foreign payments for recently privatized Brazilian utility and telephone companies drew in the fresh cash. But those two instances are not seen changing the overall trend of capital flight. A total $29 billion has fled Brazil since August after investors, frightened by Russia's currency devaluation, pulled out of Latin America's biggest economy. Following is a daily history of dollar outflows to date. Net outflows in September totaled $18.877 billion, after $12 billion left in August. Figures for the commercial foreign exchange market are provided by the Central Bank, while figures for the floating market are based on market estimates. Commercial mkt Floating mkt Net estimated flows * Oct 7 -67.035 -124.000 -191.035 * Oct 6 +195.278 -94.000 +101.278 * Oct 5 -206.059 -130.000 -336.059 * Oct 2 -331.485 -349.000 -680.485 * Oct 1 +3,181.950 -395.000 +2,786.950 September -10,346.511 -8,530.000 -18,876.511 Sept 30 -13.831 -142.000 -155.831 * Sept 29 -39.650 -415.000 -454.650 * Sept 28 -607.006 -132.000 -739.006 * Sept 25 -230.454 -201.000 -431.454 * Sept 24 -102.905 -205.000 -307.905 * Sept 23 -360.335 -164.000 -524.335 * Sept 22 -462.492 -57.000 -519.492 * Sept 21 -349.356 -169.000 -518.356 * Sept 18 -277.661 -175.000 -452.661 * Sept 17 -19.593 -188.000 -207.593 * Sept 16 -357.891 -220.000 -577.891 * Sept 15 -144.034 -208.000 -352.034 * Sept 14 -368.547 -529.000 -897.547 * Sept 11 -948.905 -753.000 -1,701.905 * Sept 10 -1,444.514 -815.000 -2,259.514 * Sept 9 -800.472 -342.000 -1,142.472 * Sept 8 -632.580 -253.000 -885.580 * Sept 4 -1,127.193 -1,798.000 -2,925.193 * Sept 3 -694.158 -635.000 -1,329.158 * Sept 2 -703.711 -459.000 -1,162.711 * Sept 1 -653.481 -670.000 -1,323.481 * August - 8,989.000 -3,012.000 -12,001.000 NOTE: All figures are in millions of dollars. Minus signs (-) indicate outflows and plus signs (+) inflows. sao.paulo.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: dougjn who wrote (8913)	10/8/1998 3:32:00 PM
From: Steve Fancy	Respond to of 22640

ADR REPORT - Telco ADRs beaten up, focus on dollar Reuters, Thursday, October 08, 1998 at 12:00 By Daniel Bases NEW YORK, Oct 8 (Reuters) - Telecommunications company American Depositary Receipts were undercut Thursday after Merrill Lynch downgraded Finland's Nokia Corp. (NYSE:NOK.A) (HELS:NOKS.A) and Sweden's A.B. LM Ericsson (NASDAQ:ERICY) (SWED:LME.B). Merrill cut its long-term ratings on the pair to accumulate from buy. Nokia ADRs were down 7-3/4 at 61-1/16; Ericsson, the volume leader among ADRs, was off 1-1/4 to 15-11/16. "Merrill's downgrade is definitely hitting those shares hard, but the worst might be over for the European ADRs," said a senior ADR trader at Dresdner Kleinwort Benson. Other telco stocks moved lower in sympathy. France's Alcatel Alsthom (NYSE:ALA) was down 1/2 at 17-1/4 in heavy trading. Alcatel issued a profit warning in September, which brought the stock sharply lower, ahead of the recent market sell-off. Brazil's Telebras (NYSE:TBR) (SAO:TELB4) was off 2-5/8 at 64-1/2, while Mexico's Telefonos de Mexico (NYSE:TMX) (MEX:TMX.L) was down 15/16 to 41-9/16. "The techs, like SAP and the telco ADRs, have been beaten up a lot, but I think they're going to outperform in the next market rally," the Dresdner trader said. The falling dollar is also a focus among ADR investors and traders. "The slide of the dollar versus the yen is the focus and it rattled the Europeans, but the concern now sits with Japan, because we are seeing both long-term Treasuries and stocks selling. So maybe they're starting to sell both now," said a trader. But as the dollar loses value against the yen, one fixed-income portfolio manager sees this as a possible end to the U.S. recycling of Japan's domestic capital surplus. "If that is changing, you'll see the restoration of emerging markets," especially in Asia, said Michael Rosborough, a fixed-income portfolio manager at Pacific Investment Management Co. Rosborough joined a series of round-table discussions at the Euromoney magazine emerging markets investment conference in New York. The dollar is currently off one yen against the Japanese currency, at 119.69 ADRs are caught in the U.S. market sell-off. The Dow Jones Industrial Average (INDEX:$INDU) was down 172.50 points or 2.23 percent to 7569.50. Copyright 1998, Reuters News Service