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Brazilian stocks

SAO PAULO: Brazilian stocks ended a subdued session on Wednesday with minor gains as investors stuck to the sidelines ahead of a key vote in Congress, traders said.

The Sao Paulo Stock Exchange's leading share index Bovespa finished up 0.3 percent at 16,617 points, keeping in line with Wall Street's small rises. The Dow Jones industrial index .was up by about half a percent when Brazil's market closed.

The lower house of Congress will start voting on a bill later Wednesday that could give President Fernando Henrique Cardoso discretion over 20 percent of the public revenues, a move considered crucial for the 2000 budget's passage.

With investors undecided about the bill's future, eyes turned to Wall Street, where shares were slightly firmer. Investors there sought refuge in blue chips amid concerns about higher interest rates and lofty valuations in the technology sector.

In Brazil, second-tier shares attracted buyers, with steel maker Acesita leading the way.

The stock rose 9 percent to 1.42 reais on market speculation it may announce a major shareholder restructuring in the near future. The firm was not immediately available for comment on the talks.

Cable TV operator Globocabo continued its upward march, rising 2.7 percent on its Internet growth prospects. Some traders said there are rumblings that Globocabo will form an association with a large telecommunications company.

Banks were mixed on Wednesday, with the country's biggest private bank Bradesco gaining 2.3 percent to 13.7 reais while second-ranked Itau retreated 1.1 percent to 154 reais. The two had rallied in recent sessions as potential buyers of to-be-privatised bank Banco do Estado de Sao Paulo (Banespa)

Banespa dropped 2.4 percent to 65 reais on Wednesday as profit-taking shaved off some of its handsome gains posted after the government finally handed down a sell-off date to the bank of May 16.

Shares in aircraft maker Embraer dropped 0.7 percent to 7.15 reais despite a favourable preliminary ruling from the government's attorney general to permit the sale of 10 percent to a French aerospace group.

The Bovespa's trading volume was moderate at 892 million reais.-Reuters