Benchmark index hits historical high in Brazil

Sao Paulo Stock Exchange (Bovespa) registered a rise of 1.51 percent in its benchmark index, which closed at a record 50,218 points Thursday, while Brazil's Central Bank forced the U.S. dollar exchange rate to increase 0.18 percent.

The total volume of stocks traded amounted to 1.814 billion U.S. dollars Thursday, which was lower than the figure registered Wednesday. The Bovespa index achieved the historical record of 50,218 points in part due to the positive tendency presented by U.S. stock exchanges.

Another reason for the rise was the flow of foreign capital into the Brazilian market, which boosted the rise in some of the main stocks traded at Bovespa.

The performance led analysts to expect the index to hit the 60,000-point barrier by the end of 2007, up 34.9 percent from the level achieved in 2006.

The previous expectation for this year was 55,000 points, but analysts regarded that prospect as "conservative" following the rising pace demonstrated by stocks at Bovespa.

In the currency exchange market, the U.S. dollar was purchased at 2.026 reals, and sold for 2.028 reals, up 0.18 percent from the rate registered Wednesday.

The rise was prompted by an intervention by the Brazilian Central Bank, which purchased 4 billion U.S. dollars only Thursday. The operation came after the U.S. dollar plummeted to 2.009 reals at around midday Thursday, its lowest rate since Feb. 2001.

Source: Xinhua