Brazilian stock alert

BRAZ

CLOSING UPDATE: Vale Preference Shares down 2.6% in 2 days 18 October 2017 18:34 BRST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Brazilian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Vale Preference Shares, Brazil's 2nd largest iron/steel company by market capitalisation, extended its slide on Wednesday, shedding an additional 19.0 centavos (or 0.6%) to trade at R$29.78. Trading volume was 16% of average at the end of the day. The preference shares have fallen 81.0 centavos (or 2.6%) over the past two trading days vs. the Brazil Index 50 which has fallen 0.4% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 0.2 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price sank 5.5% in the last month.

Note

Vale Preference Shares today is at a discount of 12.4% to the 12-month high of R$34.01 on 21 Feb, 2017. It is at a premium of 82.0% to the 12-month low of R$16.36 on 19 Oct, 2016.

The preference stock has outperformed 53% of the Brazilian market over the past 6 months.

Bullish Signals:

The present value of BRL1,000 invested one year ago is R$1,862 [vs R$1,199 for the Brazil Index 50].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 3.6% [2.1%]

TODAY'S ALERT

Afternoon Alert: Vale Preference Shares down 2.9% in 2 days

18 October 2017 12:10 BRST

Vale SA (SA:VALE5) extended its slide on Wednesday, shedding an additional 26.0 centavos (or 0.9%) to trade at R$29.71. Trading volume was 38% of average so far today. The preference shares have fallen 88.0 centavos (or 2.9%) over the past two trading days vs. the Brazil Index 50 which has fallen 0.6% in the same period.

Vale SA (SA:VALE5; SAO:VALE5; BZ:VALE5)

ISIN: BRVALEACNPA3

PermID: 4295859761

Source: www.BuySellSignals.com