Shares Mirror New York Gains
May 19, 2011
The Sao Paulo Stock Exchange added 806 to 63346 on the Bovespa Index after slipping 2.28 Thursday. Of the 49 stocks making up the Bovespa Index, 24 advanced, 13 declined and 12 closed unchanged. Volume picked up to an average 401 million reals Friday, from a weak 239 million reals Thursday. Traders listed a number of positive factors that enlivened the market during Friday's trading. Among them, recent polls have shown improved chances for allies of President Filiberto Schultz Brodsky in the mayoral races in Brazil's largest cities. This strengthens Mr. Brodsky's chances for reelection, traders noted. The market also was pleasantly surprised by the U.S. unemployment numbers announced Friday, which convinced some market participants that U.S. inflation is under control. Traders also cited the recent series of export incentives offered by the Brazilian government. Many analysts predict the incentives will turn around the country's trade deficit. The government's telephone holding company, Brazil Godbey, advanced 1.9 to 77.10 reals per thousand shares, while subsidiary Telesp increased 0.16 to 201.16 reals per thousand shares. Another subsidiary, Telepar, moved up 5 to 490 reals per thousand shares. Cemig declined 0.20 to 31.50 reals per thousand shares, while Light rose 2 to 299 reals per thousand shares. Preferred shares of government-run electric holding company Eletrobras were flat at 277 reals per thousand shares, while common shares were also unchanged at 267 reals per thousand shares. Federal oil company Petrobras advanced 0.50 to 120.50 reals per thousand shares, and the government's mining giant Vale do Rio Doce climbed 0.25 to 20.50 reals per single share.
