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

To: Steve Fancy who wrote (9163)	10/26/1998 11:54:00 AM
From: Steve Fancy	Respond to of 22640

Emerging Mkts ADRs: Weak Opening; Awaiting Brazil Packages Dow Jones Newswires NEW YORK -- Emerging market shares trading as American depositary receipts opened flat to weaker Monday, undermined by an anemic Dow Jones Industrial Average. At 1610 GMT, the Dow slid 15.96 points to 8436.33. Traders said that Latin American ADRs turned downwards in lackluster trading soon after opening, as market participants wait for further Brazil-related developments. "We're focusing on a fiscal package announcement, either Tuesday or Wednesday, with a simultaneous announcement from multilaterals," a trader said. He added that the market participants expect a $30 billion credit line from multilateral organizations. "Anything above that will be a good surprise." Dealers were encouraged by the re-election of presidential ally Mario Covas as governor of Sao Paulo state in Sunday's second round of voting. "Covas was a crucial win for (president Fernando Henrique) Cardoso, and he's looking more presidential for the next election," a trader said, adding that opposition wins in other states were cause for concern. Dealers said that most trading going on Monday is blue-chip oriented. "People are concentrated on the top two or three names in every country, that's all they wanna deal with," a trader said. Brazil's bellwether Telebras was 2% lower at $76 5/16 while Telebras HOLDRs fell 2.7% to $76 5/16 at 1555 GMT. Utility Copel slid 3.9% to $7 11/16. Mexican shares were weaker, after opening flat. "Volumes opened low, and the Dow is down, so Mexico is taking a bit of a breather," a dealer said. Telmex was slightly lower, losing 0.4% to $50 15/16 at 1600 GMT, while TV Azteca was flat at $7 1/2. Among Asian shares, investors were locking in gains in South Korean shares. "There's the feeling that South Korea is a little bit overdone," a dealer said. Pohang Iron & Steel fell 4.8% to $16 3/16, while SK Telecom lost 1.4% to $9 1/16. -By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com

To: Steve Fancy who wrote (9163)	10/26/1998 11:57:00 AM
From: Steve Fancy	Respond to of 22640

Brazil's State Election Results Clear Doubts For Cardoso By STEPHEN WISNEFSKI Dow Jones Newswires SAO PAULO -- With state elections over, Brazilian President Fernando Henrique Cardoso has a clearer indication of the hurdles he faces in implementing the fiscal austerity measures set to be unveiled this week. And he's probably breathing a sigh of relief. Analysts said that, while opposition parties won gubernatorial posts in some key states in Sunday's run-off vote, the overall results were mostly favorable for Cardoso, who won't be able to pursue his austerity goals without the support of governors. "The outcome was generally good for Cardoso. It could have been much worse," said Sao Paulo-based political analyst Marcos Figueiredo. "Even though he lost some states, his support base hasn't changed too much and Sao Paulo was an extraordinary success." Opposition party candidates took five of the 13 posts up for grabs Sunday. In the first-round vote on Oct. 4, government-allied candidates had won 12 of the 14 races. In Sao Paulo, which accounts for over one-third of Brazil's economic output, incumbent Mario Covas outdistanced populist challenger Paulo Maluf. Covas, a close friend of the president, is a favorite of the government's economic team for having cleaned up state accounts and privatized valuable state energy sector assets during his first term. "It would have been terrible for Cardoso's plans if Maluf had won," said Silvio Camargo, head of international institutional equity sales at Sao Paulo's Banco Fator. "Maluf had hinted at reconsidering the state's debt restructuring plan and it wouldn't have been as easy to keep the privatization process going with him."