Tax Brazil not curb stock market trading, says Pinto

(Updates with comments, background in paras. 2-6)

SAO PAULO (Reuters) - Brazil to duplicate a taxon of foreign investment in domestic bonds movement is unlikely that the hampertrading products stocks and derivatives, mountain biking & Bovespa ChiefExecutive Edemir Pinto said Tuesday.

The decision, which was announced the final Monday and the afterthe presidential election has could not be a first-roundwinner, raised the tax called IOF to 4 percent of 2percent previamente.El movement "should not affect" in thelocal, more dynamic financial Brazilian market securities Pinto told reporters.

"The Government was consistent investment income only rate forfixed hiking and does not create an added responsibility thestock market", said Pinto.

Analysts say that the move does not discourage local frombuying foreign investors, which offer the highest inflation-adjustedreturns among 20 largest mundo.Entradas intothe local economies fixed-income bonds markets, that reached the year Enel 19 million dollars from August, enlivened a surge in the currency Government says that it is hampering exports.

When asked if it could affect the BM & F segment thatincludes derivatives and future interest rate, Pinto said hesees "no chance of an impact".

Index Bovespa, Brazil, main index stock gained 0.5 per cent to 70,747.38, the highest levelsince intraday on April 15.

Trade volumes for futures, interest rate in tandem with recent sessions, contractswere indicating little or arising from the application of the tax increase noeffect said traders.

JUSTIFICATION FOR CHOICE?

RBS analysts said that the movement suggested the Government wastrying vulnerability counter party ' scandidate judgment, Dilma Rousseff, on the question of the real of shefailed to defeat his main challenger, JoseSerra, opposition candidate during a first round of voting on Sunday.

Mountain biking & Bovespa, Latin America's largest exchangeoperator expects record as 80 unsponsoredBrazilian depositary receipts in the market at the end of BT, said Pinto.

The company began to global businesses of Google Inc., Apple Inc. and othermajor receipts representingshares exchanges Tuesday.(Reporting by Elzio Barreto; writing by GuillermoParra Bernal; editing by Gerald e. McCormick and MaureenBavdek)

View the original article here