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

To: Steve Fancy who wrote (12108)	1/20/1999 8:29:00 PM
From: Tony van Werkhooven	Respond to of 22640

Stocks Rally for 4th Session SAO PAULO, Brazil -- Equities rallied Wednesday, extending their winning streak to four sessions, on expectations that the government will finally push through Congress a fiscal-reform measure. The Bovespa Index shot up 293.57, or 4%, to 7674.10. Volume was 655 million reals worth of shares. On Wednesday, gainers overwhelmed decliners 43 to 6, 5 were steady and 2 didn't trade. Since the decision to allow Brazil's currency to trade freely against the dollar last Friday, the Bovespa index has jumped a stunning 52% from last Thursday's close at 5057. In 1998, the Bovespa Index lost 33.5%. Receipts of market bellwether Telecomunicacoes Brasileiras, known as Telebras, gained 2.5% to 112 reals. Foreign investors continue moving in, traders said, in a trend started last Friday after the government allowed the real to float freely against the dollar. The free-float policy, combined with another foreign-exchange policy shift adopted Wednesday, led the real to lose 24% of its value in one week. Government leaders in Congress are trying to muster support to pass a fast-track mechanism allowing for the vote on the fiscal-reform vote Wednesday. The measure is considered controversial because it raises social-security payments into the country's pension system for federal public workers and retirees. Blue-chip federal electric holding company Eletrobras jumped 8.9% to 24.50 reals and its preferred stock advanced 6.2% to 25.70 reals. Preferred shares in federal oil group Petrobras rose 5.8% to 118.50 reals. At the much smaller Rio de Janeiro Stock Exchange, the benchmark index ended 2.8% higher at 25665.