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Around the World's Markets: Sao Paulo

Tuesday 19 January 1999 19:02 EST
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SHARES continued to surge in spite of expectations that investors would take profits after a two-day bounce. The Bovespa index rose 3 per cent in early trade, adding to gains of 40 per cent since Friday's decision to float the real.

Traders said foreign investors were forced to buy locally, rather than withdraw money from the country, after the Brazilian central bank raised interest rates on Monday.

Brazil's currency, the real, is trading at 1.55 to the dollar, 22 per cent lower than a week ago.

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