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Brazil stocks rise with Nasdaq, Bradesco shines

SAO PAULO: Brazilian stocks shot up on Wednesday after the market's new guiding star, the technology- rich Nasdaq index, advanced on record volume, traders said.

The Sao Paulo Stock Exchange's leading Bovespa share index gained 1.7 percent to 17,953 points. The Nasdaq composite index was up 1.9 percent at 4784.08.

Banco Bradesco was the stellar performer in Wednesday's trading, jumping 10 percent to 14 reais on expectations of bright Internet prospects for Brazil's largest private bank.

"It's just another day with Nasdaq guiding us," said Paulo de Sa, equity director at Lloyds Bank. "In this climate of fears about US interest rates, dependence on US stocks, it is very difficult for any local factor to move the markets."

The technology related stocks cornered the Brazilian market's interest once again.

"Bradesco was the main attraction of the day and another big thing was Globocabo, which finally stopped falling," said Renato Vercesi, trader at BBA/Icatu brokerage.

Deutsche Bank on Wednesday upgraded Bradesco to strong buy from buy, citing the bank's Internet advances and strategic plans. The stock is also rising on good share terms for the bank's upcoming capital increase, traders said.

Globocabo cable television firm, also with big Internet ambitions, rose nearly 5 percent to 3.6 reais after a long period of falls due to profit-taking. It had risen late last year and in January on Internet cable transmission plans.

The stock lost 8 percent in February. Financial daily Gazeta Mercantil reported analysts saying Globocabo's controlling firm, Globopar, may have played a part in the fall, but the company denied the report.

A number of cellular telephone companies also posted big gains, with Tele Centro Oeste rising nearly 9 percent to 5.6 reais, its second day of strong upward movement, following a good 1999 earnings report.

Paper and pulp producer Votorantim Celulose Papel , which early Wednesday reported a net profit of 161 million reais in 1999 against a net loss of 7 million reais in 1998, rose 6.3 percent to 64.8 reais.

Traders said the market was winding down ahead of the Carnival celebrations, which start this weekend and end on Wednesday. Foreign investors were also absent.

But trading volume did pick up Wednesday to 850 million reais ($485 million) from 700 million ($400 million) Tuesday.

Brazilian investors are watchful of any hints about whether US interest rates may be increased, as such a move could slow foreign investment into emerging markets.

The Bovespa surged 7.8 percent last month and is up five percent so far this year. -Reuters