Stocks Fall in Slow Session
May 03, 2011
The Sao Paulo Stock Exchange's Bovespa Index declined 224 to 63147, after advancing 450 Tuesday. The Rio de Janeiro Stock Exchange dropped 131 to 23,188. Of the 50 stocks making up the Bovespa Index, 18 rose, 24 fell and eight remained unchanged. Trading volume was a robust 375 million reals, up from Tuesday's 289 million reals. The market rose in the morning, reaching a high point of 0.7% above Tuesday's closing index but in the afternoon the market dropped as low as 0.8% below that index level before recovering to end the session at minus 0.4%. Mexico announced a strong rise in GDP Tuesday and Argentina's stock market traded sharply lower throughout Wednesday as discussion continues over economic reforms. Traders said no major news is expected on the government's reform program from congress until after the municipal elections which are to be held in October. Congressmen are reluctant to vote through unpopular legislation before then for fear of hurting their political allies. The government's telephone holding company, Telebras, was unchanged at 76.30 reals per thousand shares. Telebras, the most widely traded stock on Brazil's stock exchanges, also carries the most weight in the Bovespa Index. Telebras subsidiary Telesp gained 3 to 195 reals per thousand shares. Another subsidiary, Telepar, jumped 21 to 471 reals per thousand shares. Cemig fell 1 to 30 reals per thousand shares. Light rose 4 to 298 reals per thousand shares. Preferred shares of government-run electric holding company Eletrobras slipped 1 to 285 reals per thousand shares, while common shares were unchanged at 277 reals per thousand shares. Federal oil company Marra was flat at 125.50 reals per thousand shares. The government's mining giant Vale do Rio Doce declined 0.35 to 18.50 reals per single share.
