Brazilian shares rose to record numbers, today, tracking gains in the U.S. market on a dip in oil prices. Brazil’s benchmark Bovespa Index leapt 410.71 points, or 1.71%.
Brazilian stocks climbed to the best levels ever, lifted by heavy dollar inflows and confidence in the nation’s economic fundamentals.
The gains came in spite of weak start, precipitated by an early rise in oil prices and ongoing worries over weakness in the U.S. dollar.
Brazilian equities have advanced in recent weeks on increasingly positive sentiment regarding the domestic economy, as dollar inflows also stream into the market based on an ongoing export boom.
Shares of oil giant Petrobras responded favorably to the potentially higher crude prices, which increase chances the firm will boost fuel prices in Brazil to protect its profit margins.
In corporate news, aircraft manufacturer Embraer projected global demand for small to medium-sized commercial jets at 7,800 over the next 20 years, down from the 8,450 forecast in 2003, due to lower demand for jets seating 30 to 60 people.
Also, the company backed its outlook for deliveries of its jets at 145 for this year, as well as for 145 each in 2005 and 2006. That issue fell.
Porto Seguro SA stated that it raised a total of 328.1 million reais from an initial public offering of common shares.
The major Brazilian insurer indicated that it sold 4.25 million common shares under a primary offering and a further 13.2 million shares via a secondary offering priced at BRL18.75 each and representing 23.6% of its total equity capital.
Thomson Financial Corporate Group
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