Brazil stocks end at 2009 high amid caution; real dips

(Updates to close)

SAO PAULO, Sept 9 (Reuters) - Brazilian stocks seesawed on Wednesday but eked out modest gains at the close, as investors proved wary of committing more funds to stocks which have booked solid gains this year.

The benchmark Bovespa index .BVSP closed 0.1 percent higher at 57,909.95 points, setting a new high close for 2009. As of Wednesday's close, the Bovespa had gained about 54 percent so far this year.

"Stocks have already gone up a lot," said Andre Perfeito, an economist with Gradual Investimentos. "They're already quite close to their target prices," he noted, adding that investors don't see a premium in current share prices.

Brazil's currency, the real BRBY, weakened 0.38 percent to 1.834 to the dollar.

In local stock trading, preferred shares of energy giant Petrobras (PETR4.SA), the most heavily weighted stock on the Bovespa, rose 0.36 percent to 33 reais as oil prices added 0.3 percent.

The state-controlled company on Tuesday released test results from a well in the Guara field of the Santos Basin, estimating it could extract 1.1 billion to 2 billion barrels of light crude and natural gas from the region.

Massive offshore oil deposits in the subsalt region have the potential to vault Brazil into the upper echelons of global oil exporters, but the oil's subsalt location means extraction will present technical difficulties.

Weighing on the index were shares of mining company Vale (VALE5.SA), the world's largest producer of iron ore, which dipped 0.12 percent to 33.75 reais.

Vale is the second most-heavily weighted stock in the index. The stock had gained about 5 percent over the past three sessions.

Shares of GVT GVTT3.SA soared 18.59 percent to 43 reais on news after Tuesday's close that French entertainment and telecoms group Vivendi (VIV.PA) had offered to pay $2.9 billion for the company. [ID:nL8256823]

Vivendi's offer "shows confidence in the Brazilian market," said Januario Hostin Jr, an analyst with Leme Investimentos.

Even though GVT is not part of the index, Hostin noted, that move could boost investor confidence in Brazilian stocks in general.

Real estate companies fell as Gafisa (GFSA3.SA) slipped 1 percent to 27.62 reais and Rossi Residencial (RSID3.SA) slid 2.49 percent to 12.12 reais.

The companies had appreciated sharply in recent sessions, helped by the central bank's decision last week to keep the benchmark interest rate, the Selic, at a record-low 8.75 percent.

Yields on Brazilian interest rate futures contracts <0#DIJ:> largely ticked upward, particularly among contracts due in 2011 and beyond.

The minutes from last week's meeting of central bank policymakers are slated for release on Thursday. That document is typically scoured by investors searching for clues on policymakers' mindset and future inclinations.