Government Move Boosts Index
May 10, 2011
The Sao Paulo Stock Exchange gained 1681 to 62947 on the Bovespa Index, after rising 981 Tuesday. The Rio de Janeiro Stock Exchange rose 531 to 22944. Of the 50 stocks making up the Bovespa Index, 35 were higher, five were lower and 10 were unchanged. Brazil's Congress voted to reduce state tax on exports Tuesday and that the bill is to be debated by the Senate in the first half of September. The tax cut is expected to boost Brazil's export earnings and end the current trade deficit. Telebras shares, which accounted for 74% of volume Wednesday, ended the day up 3.2 points to 77.40 reals per thousand shares. Federal oil company Petrobras climbed 2 points to 120 reals per thousand shares. The government's mining giant Vale do Rio Doce leapt 0.86 point to 19.61 reals per single share.
