Steel Cos Drag Brazil Stock Index From Bigger Gains
29 April 2009 - 5:25AM
Dow Jones News
If not for underperforming steel and metals companies, Brazil's
Ibovespa stock index would be registering bigger gains.
Major steel and metals companies are trading at a loss on the
day, while the Ibovespa is trying to inch ahead of recent gains of
0.47% after being down all day.
Iron ore exporter Vale do Rio Doce (RIO) is off 0.4% to 29.57
Brazilian reals ($13.39) per share. Steel companies Gerdau (GGB)
and Companhia Siderurgica Nacional (SID) are both around 0.26%
lower. Usiminas (USIM5.BR) is 0.94% lower to BRL31.58 per
share.
Once Vale shares turn positive, then Ibovespa shares will likely
extend their gains. The index is heavily weighted towards metals
and oil company Petrobras (PBR), which is up 0.63% to BRL28.88.
The Ibovespa index has been trading negative all day based on
investor wariness over the swine flu. But news of better than
expected U.S. consumer confidence has brought investors back into
one of the most popular emerging markets around.
In New York, investors and fund managers were already pouring
money into Brazilian assets. The iShares MSCI Brazil exchange
traded fund (EWZ) was up 2.03% at 1941 GMT to $43.83 per share as
investors regain confidence in Brazilian assets.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541,
kenneth.rapoza@dowjones.com