Brazil Stocks Open Higher On Fund Buying, Bargains
Last update: 1/21/2010 8:37:42 AMSAO PAULO (Dow Jones)--Brazilian share prices opened higher Thursday on bargain hunting by domestic investment funds. The benchmark Ibovespa stocks index opened 0.29% higher at 68,413 points. Traders said domestic funds were picking up bargains following a steep 2.4% loss for the Ibovespa index in Wednesday's session. Traders added that domestic funds were positioning themselves for expected robust economic growth in Brazil in 2010. In a conference call with reporters Wednesday, Brazilian Central Bank President Henrique Meirelles forecast economic expansion of 5.8% for Brazil this year. But traders warned that the Brazilian market could turn volatile later in the session because of international factors, including release later Thursday of fourth quarter earnings reports by key U.S. companies. International funds were largely sidelined in early trading in Brazil. Blue chips were mixed in early trading. Brazil's government-controlled energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, rose 0.17% to 35.51 Brazilian reals ($19.95). But mining company Vale (VALE, VALE5.BR) was down 0.37% at BRL46.25. Brazil's second largest private bank, Bradesco (BBD, BBDC4.BR) rose 0.37% to BRL32.72. Telecommunications company Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, was down 0.49% at BRL32.41. Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, retreated 0.20% to BRL9.93. Minas Gerais utility Cemig (CIG, CMIG4.BR) rose 0.17% to BRL29.55 while southern steel maker Gerdau (GGB, GGBR4.BR) rose 0.25% to BRL27.70. -By Tom Murphy, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com (END) Dow Jones NewswiresJanuary 21, 2010 08:37 ET (13:37
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