Profit-Taking Hurts Stocks
March 30, 2011
The Sao Paulo Stock Exchange's Bovespa Index dropped 259 to 61887, after losing 788 Wednesday. The Rio de Janeiro Stock Exchange fell 72 to 22644. Declining issues led advancers on the Bovespa Index, 24 to 15, while 7 shares were unchanged and 4 were not traded. Stocks were flat in early trading Thursday and then began to oscillate more intensely as the session progressed. The index rose as high as 1.6% above the opening level and dropped as low as 1% below. Telebras has made strong gains in recent weeks, and it accounted for 67% of stocks traded Thursday. On Wednesday, the Senate voted to permit private capital participation in cellular telephone services. The government's telephone holding company, Telebras, dropped 1.2 to 73.90 reals per thousand shares. Telebras subsidiary Telesp fell 1 to 200 reals per thousand shares. Another subsidiary, Telepar, gained 1 to 482 reals per thousand shares. Eletrobras stocks rose sharply during Thursday's session on rumors that it would post first half profits of over $1.6 billion. Preferred shares of government-run electric holding company Eletrobras jumped 15 to 303 reals per thousand shares, while common shares leapt 16 to 292 reals per thousand shares. Federal oil company Petrobras slipped 1 to 116 reals per thousand shares. The government's mining giant Vale do Rio Doce lost 0.02 to 18 reals per single share. Cemig was unchanged at 27.60 reals per thousand shares. Light fell 4 to 266 reals per thousand shares.
