Exchange advances 1.17% and exceeds 70 thousand points for the 1st time
Folha de S. Paulo - 05/06/2008
Irrespective of facing a discouraging international setting, the São Paulo Stock Exchange found energy to go up again and close above 70 thousand points for the first time ever. Yesterday's increase of 1.17% was milder than the valuations from the last trading sessions, marked by euphoria after Brazil received the investment grade, but it guaranteed the Stock Exchange's new record. In the Foreign Exchange Market, the US dollar went 0.48% up and was traded at R$ 1.658. On Friday, it had ended the day at R$ 1.65, the lowest price since May, 1999. When it closed at 70,174 points, the São Paulo Stock Exchange made analysts reevaluate how high the domestic Stock Market may get in the next months. The record mark shows the stocks have never been so valued and that always opens room for falls. Last Wednesday, the credit rating agency Standard & Poor's gave the country an improvement in its grade and became part of the investment grade category. The grade is granted to countries considered the safest to invest. Since the decision, the São Paulo Stock Exchange has accumulated a 9.95% high. This position makes Brazil more attractive to foreign capital. This way, the Stock Exchange is expected to receive more funds from abroad, which should knock the US dollar down. In April, foreign investors purchased more stocks than they sold in the Stock Exchange amounting to R$ 6 billion (US$ 3.64 billion). The figure was record for the month. In yesterday's trading session at the São Paulo Stock Exchange was the time for the stocks from minor banks to stand out. The investment grade may represent greater facility for those institutions to raise funds abroad - money that may be destined to the expansion of the credit granting. This type of transaction may allow them to obtain funds at lower rates and lend them at higher interest rates. Among the most traded securities, the Petrobrás stocks valued more than Bovespa's.