Brazil markets forge ahead in first session of 2004

Brazil's stock index hit another record high close on Friday following a firm open on Wall Street, and the local currency also strengthened after investors sold dollars in a thin market, traders said.
The Sao Paulo Stock Exchange's benchmark Bovespa index, which gained a stunning 97 percent and chalked up repeated record highs in 2003, gained 0.9 percent to a fresh all-time high close of 22,444.7.
The real strengthened to end its first session of the year at 2.879 per dollar from Tuesday's 2003 close of 2.903, adding to the currency's 22 percent gain during 2003.
Traders said investors had sold some of the dollars they had bought earlier in the week to try to raise the Ptax, the exchange rate used when local dollar-denominated debt matures.
Nevertheless, the market was so thin that data showing Brazil's trade surplus almost doubled to $24.8 billion in 2003 from $13.1 billion in 2002 did not have much of an impact on the exchange rate.
"There's almost nobody working today, so I think that number should only be reflected on Monday when it should weaken the dollar," said Mario Battistel, director of foreign exchange at brokerage Novacao said.
Stock traders said the Bovespa also was quiet and had got an initial boost from early gains on Wall Street, where many of Brazil's blue-chips have a dual listing, and managed to hold onto the gains despite a retreat by US stock prices. Bovespa gains outpaced losses by 34 to 20.
Bellwether stock, telecommunications company Tele Norte Leste Participacoes, which accounts for about 13.5 percent of the index, gained 1.8 percent to end at 45 reais.
Petroleo Brasileiro, the state oil company known more commonly as Petrobras, advanced 3.7 percent to 79.20 reais.
Petrobras is the second heaviest-weighted share on the market, accounting for about 8.5 percent of the index.
Brazilian markets rallied strongly in 2003 after the Central Bank cut interest rate 10 percentage points since June and progress on fiscal and pension reform led investors to bet that Latin America's biggest economy would soon rebound.
Brazil's Central Bank believes the economy will recover from near-zero growth in 2003 and expand 3.5 percent this year.