|
Please note: All time GMT
Back to today's news
DJMN: Brazil Stocks Closes Higher On Commodities, Banks
SAO PAULO (Dow Jones)--Brazil stocks shook off early losses to rise sharply Tuesday, driven by rising commodity prices and positive prospects for the banking industry.
Brazil's benchmark Ibovespa stock index closed 1.8% higher at 62,643 points on the Brazilian Stock Exchange, or Bovespa, reversing part of the losses registered over the last two weeks since the government imposed a 2% toll in foreign investment inflows.
Trading volume totaled 6.6 billion Brazilian reals ($3.8 billion), which is about average for the market.
Rising commodities prices caused market bellwethers Petroleo Brasileiro (PBR, PETR4.BR) and Vale SA (VALE, VALE5.BR) to rally. Petrobras ended 1.5% higher at BRL35.55, while Vale finished 3.8% higher at BRL40.96.
The market was emboldened by the news that Vale would issue bonds. The mining company launched $1 billion in 30-year overseas bonds Tuesday at 265 basis points over Treasurys.
Better-than-expected U.S. factory goods orders were also positive for stocks.
Banks recovered after Itau Unibanco Holding SA (ITUB, ITUB4.BR), Brazil's largest private bank, reported better than expected third-quarter results and said it expects its loan portfolio to grow 25% in 2010.
Shares in Itau were 5.3% higher at BRL35.26. Rival Banco Bradesco SA (BBD, BBDC4.BR) also benefited, rising 2.1% to BRL35.30
GVT Holding SA (GVTT3.BR) rose 1.2% to BRL51.00 on news that shareholders voted Tuesday morning to waive a poison pill clause, opening the way for Spain's Telefonica SA (TEF, TEF.MC) to pursue its bid to take over the company and for rivals such as France's Vivendi SA (VIVEF, VIV.FR) to make a counteroffer.
-By Alastair Stewart, Dow Jones Newswires; 5511 2847-4520; alastair.stewart@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=zzvIlbd1ABWdI3%2FD8hQw4w%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 03, 2009 15:47 ET (20:47 GMT)
|
