Rio to Host 2016 Summer Games, Brazilian Stocks Jump

• By the tickerspy.com Staff
• On 1:11 pm EDT, Friday October 2, 2009

It's official, Rio de Janeiro will be the first South American host of the Olympic Games -- and equity traders were moving into Brazilian stocks as a result.

Despite lobbying efforts from President Obama and Oprah Winfrey, among others, Chicago lost its bid to host the 2016 summer games in the first round of International Olympic Committee (IOC) voting, according to The Washington Post. With Tokyo also knocked out in the second round, only Rio de Janeiro and Madrid remained. The former was eventually announced the winner, and investors are bidding Brazilian stocks up across the board.

As a whole, the Brazil Stocks and ADRs Index is up by 1.6% today, with top components jumping by 4% or more.

After trending higher for most of the morning trade, Brazilian airlines TAM (NYSE: TAM - News) and Gol Linhas Aereas Inteligentes (NSYE: GOL) both shot higher after the announcement. Both are now up by over 3.5% in today's session.

Telecom stocks TIM Participacoes (NYSE: TSU - News), Brazil Telecom (NYSE: BTM - News), and Brasil Telecom Participacoes (NYSE: BRP - News) are all ahead by more than 1.5% in the rally.

Steel companies Gerdau (NYSE: GGB - News) and Vale (NASDAQ: VALE - News) are also moving higher.

According to Bloomberg, Brazil's currency, the real, is also moving higher after the announcement, gaining 50 basis points on the U.S. dollar.

Investors can track the Brazil Stocks and ADRs Index for equity trends as the 2016 games approach.

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