SAO PAULO, March 23 (Reuters) - Brazilian stocks werelittle changed on Tuesday as mining giant Vale surged onexpectations over a new iron ore price system that could alsobenefit steelmakers, but gains were partially offset by a slumpin energy giant Petrobras.
The benchmark Bovespa index .BVSP on the Sao Paulo stockexchange dipped 0.05 percent to 69,005.86 after firming 0.3percent in the previous session. Vale jumped as much as 3.4percent after the Valor Economico newspaper reported thecompany would move away from a benchmark pricing system, whichcould more than double iron ore prices in 2010.
"What"s giving some support to the market is the goodperformance of Vale shares because of expectations over theiron ore price adjustments," said Renato Tavares, investmentanalyst at the Intrader brokerage in Sao Paulo. Vale officialsdeclined to comment on the report. For details, see[ID:nN23239948]
Vale stock (VALE5.SA) rose 2.6 percent to 48.54 reais,while rival mining company MMX Mineracao (MMXM3.SA) jumped 3.4percent to 13.57 reais. Bradespar (BRAP4.SA), a holding companywhose main assets are shares in Vale, jumped 2.1 percent to43.39 reais.
Cia. Siderurgica Nacional (CSN) (CSNA3.SA) gained 3.2percent to 68.24 reais, while Usiminas (USIM5.SA) was up 1.2percent to 55.46 reais. The companies, which have their ownlarge deposits and have invested to expand iron ore output inpast years, may benefit from higher prices on expectations ofrising exports of the mineral.
Petrobras (PETR4.SA) dropped 1.2 percent to 35.81 reais,the main drag on the Bovespa. UBS said despite strongfourth-quarter results, concerns over an increase in capitalexpenditures in the coming years would mean the state-run oilcompany could remain cash-flow negative for the next fiveyears.
Brazil"s currency, the real (BRBY), strengthened 0.9percent to 1.784 per dollar despite lingering concerns overGreece"s debt troubles as dollar inflows gained steam, said BGCLiquidez brokerage trader Francisco Carvalho.
Yields on Brazilian interest rate futures contracts<0#DIJ:> fell after data showed inflation slowed in the monthto mid-March from mid-February.
The yield on the contract due January 2011 DIJF1 dippedto 10.26 percent from 10.29 percent on Monday, while the yieldon the contract due January 2012 DIJF2 dropped to 11.61percent from 11.67 percent. (Reporting by Aluisio Pereira and Silvio Cascione; writing byElzio Barreto; editing by Jeffrey Benkoe)
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