Casa Grande, Pampa, Ultrapar, Geo, Homex: Latin America Equity Preview

The following companies may have unusual price changes in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index gained 0.1 percent to 3,810.01. In Brazil, preferred shares usually are the most-traded class of stock.

Argentina

Pampa Energia SA (PAMP AF): Argentina’s biggest electricity generator and distributor expects profit to increase as much as 50 percent as it expands the Loma de la Lata power plant, Chairman and President Marcelo Mindlin said in an interview. Pampa fell 0.6 percent to 1.68 pesos.

Brazil

Companhia de Saneamiento de Minas Gerais (CSMG3 BS): The water works company for the state of Minas Gerais approved 1.3 billion reais in financing. The company plans to issue 605.4 million reais in local bonds to be subscribed by Caixa Economica Federal, as well as 740.7 million reais in bonds to be subscribed by Brazil’s national development bank. Copasa, as the company is also known, rose 1.3 percent to 24 reais.

Ultrapar Participacoes SA (UGPA4 BS): The Brazilian fuels and petrochemicals group said its board approved a 900 million reais loan from Banco do Brasil SA. The loan will be taken by its fuel distribution unit Ipiranga Produtos de Petroleo SA. Ultrapar rose 1.1 percent to 84.90 reais.

Mexico

Deutsche bank initiated coverage of five listed homebuilders in Mexico with “buy” ratings for Corp Geo SAB de CV (GEOB MM) and Desarrolladora Homex SAB de CV (HOMEX* MM), “hold” ratings for Urbi Desarrollos Urbanos SAB de CV (URBI* MM) and Consorcio Ara SAB de CV (ARA* MM), and a “sell” recommendation for Sare Holdings SAB de CV (SAREB MM).

Geo rose 1.3 percent to 35.36 pesos, Homex increased 2 percent to 55.87 pesos, Urbi gained 0.5 percent to 23.95 pesos, Ara rose 0.5 percent to 7.91 pesos and Sare fell 1 percent to 2.97 pesos.

Peru

Casa Grande SA (CASAGRC1 PE): Peru’s agricultural ministry said that the arrival of 16,500 metric tons in imported sugar will reduce consumer prices of the sweetener, the Andina news service reported. Casa Grande, Peru’s largest sugar producer, gained 1 percent to 6.06 soles.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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