Brazilian markets climbed, aided by a plunge in global oil prices to below US$ 49 a barrel. The drop in oil combined with Bush’s victory and a stronger local currency versus the dollar to lift Brazilian shares.
Brazil’s benchmark Bovespa Index jumped 219.51 points, or 0.93%. Brazilian shares firmed, as a stronger currency and a drop in global oil prices to below US$49 a barrel eased fears regarding potential interest-rate hikes.
Oil tumbled on the heels of a post-election rally yesterday and on a report showing natural gas storage at record levels.
The U.S. Energy Information Administration’s weekly natural gas inventory report indicated that total domestic gas inventories rose 44 billion cubic feet last week to 3.293 trillion cubic feet.
Additionally, Brazil’s private Getúlio Vargas Foundation’s consumer confidence poll found optimism among Brazilian consumers rose for the fourth straight month, with 45.8% saying they were optimistic about the economy, compared with 44.6% in September.
Turning to corporate news, Brasil Telecom Participações reported that its third-quarter net earnings slid to 116.2 million reais from 147.6 million reais one year prior, including a premium from its CRT unit.
The company blamed the decline on higher costs, which undercut revenue growth from phone rates and increasing data transmissions. Net revenue rose 15% to 2.4 billion reais from the year-ago period, while EBITDA firmed 2.6% to 984 million reais.
Also, Brazilian petrochemicals giant Braskem SA announced that it turned a net profit of 496 million reais, versus a loss of 58 million reais one year earlier.
The firm noted that quarterly net revenue jumped to 3.36 billion reais from 2.20 billion reais last year on higher prices and sales volumes, particularly in the domestic market. EBITDA accelerated 61% to 744 million reais.
Net Serviços de Comunicação stated yesterday evening that it will issue 1.8 billion shares in a private placement.
The Brazilian pay television company said that in an attempt to speed up the deal and pay back its creditors, it decided to issue the 745 million ordinary voting shares and 1.1 billion nonvoting preferred shares privately, instead of via a public offer.
Amid research notes, a major brokerage raised its stance on Gerdau SA to “peer perform” from “underperform,” after the Brazilian steelmaker yesterday displayed a third-quarter net profit that topped the analyst’s forecast.
Thomson Financial Corporate Group