Barring a China or US Surprise There’s No Stopping Brazil Stocks Rally

Brazil's stock market Bovespa Brazilian stocks climbed Thursday, May 4, to a new record pushing the benchmark Bovespa index above 50,000 for the first time. The index of most-traded shares on the São Paulo exchange rose 746.68 or 1.5% to 50,218.22.

This is the fifteenth record this year and Bovespa has gained 13% and is trading at 13.34 times earnings per share. The first week of the year the gauge traded at an average 12.16 times earnings, up from 11.11 in the week ending October 6.

Vale, the world's second-largest miner rose 2.12 reais or 3%, to 73.01 reais.

PT International Nickel Indonesia, 60% owned by Vale, said first-quarter profit surged fivefold as higher nickel prices helped boost sales. Vale said in a statement that it got US$ 650 million in credit lines from a group of 19 banks led by France's BNP Paribas.

On Wednesday the Trade Ministry said Brazil's trade surplus widened more than forecast to 4.2 billion in April, from a revised 3.36 billion during March, as the price of commodities such as steel rallied.

Brazil's policy makers will probably cut the overnight rate to 10% by the end of 2008, according to the median estimate of about 100 economists in an April 27 central bank survey. They lowered the estimated from 10.5% in the previous survey. The economists cut their 2007 inflation forecast to 3.69% from 3.78%. The central bank targets inflation of 4% for 2007 and 2008.

Interviewed by "Folha de Sao Paulo", market analyst André Borghesan forecasted the Bovespa index would reach 52.000 points by the end of June.

"For the moment there are no identifiable motives for a sudden drop in stock prices unless there's a surprise from China or some very disappointing index in the US".

Mercopress

Tags:

Ads

You May Also Like

Brazil’s Key Interest Rate Expected to Rise

Brazilian equities rose, Thursday, alongside various favorable corporate news items. Despite initial profit taking, ...

After Another Record Week Brazilian Exports Reach US$ 32 Bi in 2006

Brazilian exports added up to US$ 2.833 billion in the first week of April, ...

Brazil Sugarcane Industry Calls for an End to Ethanol Tariffs Worldwide

For the Brazilian sugarcane industry it doesn’t make any sense for countries to adopt ...

Brazil: ‘No Need to Always Agree with US’

United States Secretary of State, Colin Powell, speaking to reporters during a press conference ...

Brazil’s Lula Makes Defense of Democracy Before Chavez

South American integration is "advancing fast and with our own resources," said Brazilian president ...

US and the Rich Urged in Brazil to Cancel Poor Nation’s Debts

The Global Call to Action Against Poverty (GCAP), the biggest ever global mobilization to ...

A Full Day of Ceremonies for Lula in the North of Brazil

Brazilian President Luiz Inácio Lula da Silva will spend the day in the state ...

Rain Kills 32 and Leaves Half a Million Homeless in the North of Brazil

The Brazilian government rushed aid Wednesday, May 6, by air, over land and through ...

Brazil’s Petrobras Sets New Record in Oil Production

In an official note issued on Friday, May 26, Brazilian state-onwed oil company Petrobras ...

Brazil’s Lula Hopeful There Will Be a Mersosur-EU Accord This Year

Brazilian President Luiz Inácio Lula da Silva declared that Brazil continues its efforts to ...