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Montevideo, March 29th 2024 - 07:49 UTC

 

 

Bovespa index at new high, having advanced 76% so far this year

Thursday, October 15th 2009 - 11:58 UTC
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China and strong demand for commodities boosting Brazilian market China and strong demand for commodities boosting Brazilian market

Brazil's Bovespa stocks index and currency, the Real, extended recent rallies Wednesday to end at fresh highs not seen in more than a year. The main Sao Paulo stocks index ended 2.4% higher at a 16-month high of 66,201 points.

With the result, the Bovespa saw gains for a fourth straight session. The index has advanced by 7.85% so far in October and by 76.69% so far this year.

Brazil's Real also strengthened sharply, reaching a 13-month high of 1.7025 per US dollar.

Traders noted the local stocks index began the session moving higher following an enthusiastic reaction to upbeat earnings reports abroad, where heavyweight bank and technology sector players JPMorgan Chase & Co. and Intel Corp. posted encouraging third-quarter results. Furthermore Citigroup raised its year end target for Brazil Bovespa’s index to 70.000

Highly sensitive to metals and food exports, rising international commodities prices continued to provide support for major local players in the Brazilian market.

The market was also boosted by the announcement from Vale Doce SA, the world’s largest iron ore exporter that it had reached an agreement with the state of Minas Gerais,

The agreement unveils projects to develop and expand its production capacity in the Minas Gerais state in order to meet the growing global iron ore demand. These projects are Apolo, Conceição Itabiritos and Vargem Grande, whose investments are estimated at approximately 9.5 billion Reales,, approximately 5.6 billion USD.

Categories: Economy, Brazil, International.

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