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Brazil stocks end with modest gain, break 18,000

SAO PAULO: Brazilian stocks closed slightly higher on Thursday, but managed to break through the important 18,000 point level, following uneven trading in which only telecommunications shares were firmer, traders said.

"We had a good, positive day today. The market managed to consolidate itself despite some sideways moves and broke the long-wanted resistance level," said Marcelo Porto, a trader with Concordia Brokerage. "Surprisingly for the eve of Carnival, the volume was good."

Sao Paulo's benchmark Bovespa stock index gained 0.4 percent, closing at 18,015 points. Trading volume was around 850 million reais ($485 million), about the same as on Wednesday, but a good deal higher than earlier this week.

Many traders had expected the market to wind down ahead of the Carnival celebrations, which start this weekend. They expected very thin business on Friday.

"It looks like some people decided to buy and sell what they needed ahead of the long holiday period," said Evandro dos Reis of Indusval brokerage. "There is no other explanation for the high volume today."

Traders said the telecoms rise could be explained by recent recommendations by a number of foreign banks to buy stocks in the sector that most expect to experience high growth.

Benchmark Telebras receipts , a basket of shares including 10 telecommunications firms, rose 2.1 percent to 271 reais. Telesp telephone company jumped up 5.4 percent to 63.5 reais.

Strong 1999 fourth quarter results pushed Telemig Celular Participacoes up 11 percent to 7.9 reais. Morgan Stanley Dean Witter earlier on Thursday raised its price target fro Telemig to $105 per ADR from $80 for the same reason.

Bradesco bank had another day of gains, although smaller than in some previous sessions this week, on expectations of bright Internet prospects. Its preferred stock rose 0.7 percent to 14.1 reais.

Pay TV and high-speed Internet provider Globocabo also continued its upward trend on Thursday, which came after a long period of lower prices. Globocabo rose 3.9 percent to 3.7 reais.

The Bovespa index is up 1.3 percent so far this week and has risen 5.4 percent since the start of the year.

Markets will be closed Monday, Tuesday and for a half day Wednesday.-Reuters