JBS, LLX Logistica, OGX Petroleo, Suzano: Brazil Stock Movers
The following companies are having unusual price changes in Sao Paulo trading. Stock symbols are in parentheses and prices are as of 9:25 a.m. New York time. Preferred shares are usually the most-traded class of stock.
The Bovespa stock index decreased 0.1 percent to 69,715.01.
JBS SA (JBSS3 BS) the world’s biggest beef producer fell 0.9 percent to 6.67 reais. Brazil’s national development bank, BNDES, asked pulp maker Eldorado Brasil, which is controlled by the family that owns JBS, to merge with Florestal Brasil, a reforestation company, as a condition to receive a 3 billion- real ($1.8 billion) loan, O Estado de S. Paulo reported, without saying where it obtained the information.
LLX Logistica SA (LLXL3 BS) surged 6.3 percent to 4.88 reais. The decline this month in LLX’s stock price reflects excessive pessimism on the company’s ability to execute its projects, UBS AG analyst Victor Mizusaki said in a note to clients today. The logistics company fell 16 percent since the end of October through last week after saying it planned to spin off its Sudeste port project, which now trades as PortX Operacoes Portuarias SA.
OGX Petroleo & Gas Participacoes SA (OGXP3 BS) dropped 0.4 percent to 19.84 reais. The oil company controlled by billionaire Eike Batista failed to complete a well test at the Vesuvio oil field in the Campos Basin due to technical reasons, and will complete additional drilling at the area in 2011, it said in a regulatory filing.
Suzano Papel e Celulose SA (SUZB5 BS), Latin America’s second-biggest pulp exporter, lost 0.6 percent to 15.77 reais. BNDES Participacoes SA exercised its right to convert 212,878 Suzano bonds into shares of the same company, according to a regulatory filing.
Usinas Siderurgicas de Minas Gerais SA (USIM5 BS) climbed 2.2 percent to 19.20 reais. Brazil’s second-biggest steelmaker and Sumitomo Corp., controllers of the Mineracao Usiminas SA joint venture, may consider reducing their stakes in the miner, Valor Economico said, citing Usiminas CEO Wilson Brumer.
Vale SA (VALE5 BS) increased 0.5 percent to 50.20 reais. The world’s biggest exporter of iron ore plans to produce 311 million tons next year to meet expected demand in Asia for the raw material used to make steel, investor relations chief Roberto Castello Branco said Dec. 5 at a press conference in Hong Kong.
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