Brazilian Shares Rise as Vale Gains, Real Strengthens Against Dollar
March 02 2016 - 5:18PM
Dow Jones News
By Jeffrey T. Lewis
SAO PAULO--Brazilians shares rose Wednesday, led by iron-miner
Vale SA, and the real strengthened against the dollar ahead of the
Central Bank of Brazil's interest rate decision.
The Ibovespa stocks index rose 1.8% to 44893 points, its highest
close in 2016. The real exited active trading at 3.8884 to the
dollar, according to Tullett Prebon via FactSet, after closing at
3.9424 on Tuesday.
Brazil's central bank will announce its decision on interest
rates later Wednesday, and is expected to leave its benchmark
interest rate unchanged at 14.25%.
Vale's preferred shares jumped 8.1% to 9.99 reais after the
company, Australia's BHP Billiton Ltd. and their subsidiary,
Samarco Mineração SA, reached a settlement with the Brazilian
government over the collapse of a tailings dam operated by Samarco
that collapsed in November.
The disaster killed 19 people, left hundreds more homeless and
polluted more than 400 miles of rivers in southeast Brazil's Rio
Doce basin.
"The agreement eases some of the uncertainty" about the cost to
the companies of the cleanup and other damages, said Pedro Paulo
Silveira, chief economist at the Nova Futura brokerage in Sao
Paulo.
Other big gainers include oil company Petroleo Brasileiro SA, or
Petrobras, which rose 6.4% to 5.65 reais, and steelmaker Companhia
Siderúrgica Nacional, or CSN, which advanced 4.6% to 5.65
reais.
-Paul Kiernan in Rio de Janeiro contributed to this article.
.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
March 02, 2016 17:03 ET (22:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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