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".



You May Also Like

Online Presidential Debate in Brazil Draws 50 Million

Less than two months before ballot day, October 3. three major candidates for the ...

Soy Interests in Brazil Make Demarcation of Indian Land Difficult

Leaders of the Enawenê-Nawê, Irantxe (Manuke) and Kayabi peoples, who live in the state ...

Carla Hassett? You’ve Heard This Brazilian. We Bet.

{mosimage}Sitting in a sidewalk café in Los Angeles, Carla Hassett is hard to miss. ...

Favela in Rio, Brazil

Slavery Is Alive in Brazil While People Keep Living in Favelas and Streets

Overshadowed by the Pope’s visit to Brazil, the 119th anniversary of the Abolition of ...

US Getting 20,000-a-Month Water-Saving Toilet Bowls from Brazil

Catering to the demand from consumers who struggle with water scarcity, as well as ...

Brazil’s Fallen Finance Minister Talks About Meanness Against Him

Brazil’s Ministry of Finance released the entire text of the resignation letter that former ...

Brazilian President Lula with Bush in Camp David

After Meeting Bush, Brazil’s Lula Says He’s Going Back Home Empty Handed

Brazil and the United States invited El Salvador to become the "pilot" country for ...

Rotavirus Vaccine Should Save Life of 1,600 Children a Year, in Brazil

The Brazilian public health network will have a vaccine for rotavirus in March of ...

Brazil Reserves 13 Million Hectares of Amazon for Sustainable Use

Brazil’s Minister of Environment, Marina Silva, said Wednesday, March 30, that the Brazilian government’s ...

Death Threats Are Part of Daily Life for Brazil’s Human Rights Activists

The UN rapporteur for human rights, Hina Jilani, recently visited  Brazil to become more ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]