NEW YORK (TheStreet) -- Shares of Brazilian telecommunications company Oi S.A. (OIBR) rose 1.23% to $2.47 in morning trading Thursday after the Central Bank of Brazil increased its interest rate late Wednesday by 50 basis points to 12.25%, the highest level since August 2011.
The bank's eight-member monetary policy committee, called Copom, raised the rates on the benchmark Selic rate, a move analysts had widely expected, in an effort to fight inflation. The bank raised rates for the second straight session, as it made a similar move in December.
Reuters also noted the bank delivered an "unusually terse statement" in which it did not gave any indication of its next move.
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More than 1.68 million shares had changed hands as of 10:04 a.m., compared to the daily average volume of 1,660,240.
Separately, TheStreet Ratings team rates OI SA as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate OI SA (OIBR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, generally high debt management risk, disappointing return on equity and weak operating cash flow."