Brazil's Bovespa Gains

Brazilian stocks rose for a third day, capping a second week of gains for the first time since May, after the country's biggest phone company approved the payment of extraordinary dividends and plans to expand.

Tele Norte Leste Participacoes SA and operating unit Telemar Norte Leste SA, part of Brazil's biggest phone company, led advances on the index after approving 5.1 billion reais ($3.1 billion) in dividends. Brasil Telecom Participacoes SA, being bought by Tele Norte parent Telemar Participacoes SA, gained after it announced plans to expand operations to Colombia. Petroleo Brasileiro SA, the oil company that is the most heavily weighted stock on the index, gained as crude headed for its biggest weekly gain in almost two months.

The Bovespa added 186.10, or 0.3 percent, to 56,568.32 at 10:04 a.m. New York time for a weekly gain of 1.3 percent. The MSCI Latin America index dropped 0.3 percent. Mexico's Bolsa fell 0.2 percent, while Chile's Ipsa index slipped 0.1 percent.

Tele Norte rose 3.3 percent to 38.41 reais. Shareholders will get 1.2 billion reais in dividends, while Telemar shareholders will get 3.9 billion reais, board members decided.

Brasil Telecom jumped 4 percent to 22.15 reais. The Brasilia-based phone company said in a filing yesterday it plans to open a subsidiary in Colombia.

Petrobras, as the Rio de Janeiro-based oil exploration and production company is known, rose 1.4 percent to 35.85 reais. Oil gained more than 2 percent in New York as producers evacuated rigs before the arrival of Gustav, forecast to be the largest hurricane in the Gulf of Mexico since Katrin

Brazil, Bloomberg
8/29/2008 9:09:43 AM