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Brazil stocks end up on rally in mobile phone shrs

SAO PAULO: Brazilian stocks ended higher in robust turnover Friday led by a rally in the mobile telephone sector, which analysts said was due to its investments in Internet related business, traders said.

The Sao Paulo stock exchange's leading share index Bovespa .finished up 1.87 percent at 18,675 points, bringing the gain so far this month to 5.8 percent and 9.3 percent so far this year. Total volume on the market was a healthy 1.5 billion reais ($865 million).

Investors shopped for second-tier wireless telephone issues after analysts started recommending them on the their Internet-linked growth, traders said.

Telesp Celular, a mobile phone service operating in Brazil's industrial hub of Sao Paulo, rose a brisk 6 percent to 44.20 reais. Telepar Celular and Tele Norte Celular were also among investors' favourite picks, rising 8.6 percent and 6.8 percent respectively.

"Investors are giving credit to this sector as the companies started admitting they would in the future start offering services other than that of voice," said Daniel Baldin, telecommunications analyst at Fator-Doria Atherino.

Buying in the wireless sector also boosted shares in the market's benchmark fixed-line telephone firms such as Telebras, which gained 3 percent to 283.5 reais.

Other advancers on Friday included Brazil's top brewer Brahma, which jumped 7.4 percent to 1,380 reais. The company reported the day before that it had information Brazil's antitrust watchdog Cade could rule in favour of its proposed merger with second-ranking beer maker Antarctica.

The stock gained despite a contradicting report released by No.3 brewer Kaiser, which said it had information that the merger will not be approved as the way it was proposed. A final decision on the merger is expected to be unveiled by Cade on March 29.

Bucking the general upward trend was pay TV firm Globocabo, which dropped 3.5 percent to 3.3 reais. The stock had been sought after in recent sessions due to expected growth in its Internet-linked business, but investors opted to take profit on Friday, traders said.-Reuters