Cemex, OHL Mexico, Petrobras, Vale: 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 fell for a third day, declining 0.1 percent to 4,422.71.

Brazil

Banco do Brasil SA (BBAS3 BS): Brazil’s biggest federally controlled lender will announce the purchase of a bank based in Florida by the beginning of next year, O Globo newspaper said Dec. 12, citing Allan Simoes Toledo, the vice president of international business. The company will also buy another bank in Chile by the end of next year and is looking at other lenders in Colombia and Peru, the newspaper reported. The shares fell 0.5 percent to 30.85 reais.

Braskem SA (BRKM5 BS): Latin America’s largest petrochemicals producer was raised to “buy” from “hold” at Banco Santander SA to reflect improvements in the chemicals industry. Braskem gained 1.7 percent to 18.40 reais.

Fibria Celulose SA (FIBR3 BS): The world’s largest pulp producer was cut to “hold” from “buy” at Banco Santander. The shares rallied 3.3 percent to 28.88 reais.

Iguatemi Empresa de Shopping Centers SA (IGTA3 BS): The Brazilian operator of shopping malls was cut to “hold” from “buy” at Banco Santander. Iguatemi added 0.6 percent to 40.75 reais.

LPS Brasil Consultoria de Imoveis SA (LPSB3 BS): The Brazilian real-estate brokerage agreed to buy 55 percent of Local Negocios Imobiliarios Ltda and Local Imoveis Ltda for 25.6 million reais, according to a Dec. 10 regulatory filing. The shares declined 0.7 percent to 38.49 reais.

Minerva SA (BEEF3 BS): The Brazilian meatpacker was cut to “hold” from “buy” at Banco Santander. Minerva advanced 0.5 percent to 6.55 reais.

Net Servicos de Comunicacao SA (NETC4 BS): The stock was cut to “underperform” from “hold” at Banco Santander after a rally in the past three months. The shares slipped 0.1 percent to 22.98 reais.

Obrascon Huarte Lain Brasil SA (OHLB3 BS): The manager and operator of toll roads was cut to “hold” from “buy” at Banco Santander. The shares were unchanged at 59 reais.

Odontoprev SA (ODPV3 BS): Brazil’s largest provider of dental-care insurance was reduced to “hold” from “buy” at Banco Santander, which said the company’s positive fundamentals are partially priced in after surge in the last 12 months. Odontoprev lost 0.7 percent to 24.15 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil’s state- controlled oil producer denied it’s in talks to buy a stake in Brazilian ethanol maker ETH Bioenergia SA, according to a Dec. 11 statement. Folha de S.Paulo, a Sao Paulo-based newspaper, reported earlier that Petrobras was seeking to buy 40 percent of ETH Bioenergia for 3 billion reais ($1.8 billion). Petrobras shares advanced 1.2 percent to 25.7 reais.

Rossi Residencial SA (RSID3 BS): The homebuilder was raised to “buy” from “hold” at Banco Santander, which said it expects an improvement in the company’s sales performance. Rossi increased 1.3 percent to 14.20 reais.

Vale SA (VALE5 BS): Brazilian iron-ore exports will expand to 346 million metric tons next year, compared with 304 million tons this year, Macquarie Group Ltd. said in a report distributed Dec. 10. Vale, the world’s biggest exporter of iron ore, gained 1.1 percent to 50 reais.

Chile

Colbun SA (COLBUN CI): The Chilean power generator was cut to “hold” from “buy” at Banco Santander, which cited lower-than expected third-quarter earnings and an increase in capital expenditure on a thermal project. Colbun fell 0.3 percent to 133.55 pesos.

Enersis SA (ENERSIS CI): The shares was raised to “buy” from “hold” at Banco Santander SA, which cited the company’s earnings outlook. Enersis decreased 0.3 percent to 226.38 pesos.

Inversiones Aguas Metropolitanas SA (IAM CI): The holding company, whose main asset is a controlling stake in water utility Aguas Andinas SA, was raised to “buy” from “hold” at Banco Santander, which cited the company’s attractive dividend yield and higher-than-expected operating margins. IAM advanced 0.7 percent to 778.15 pesos.

Colombia

Bancolombia SA (BCOLO CB): Colombia’s biggest lender was cut to “underperform” from “hold” at Banco Santander to reflect lower margins. The stock sank 0.7 percent to 29,800 pesos.

Ecopetrol SA (ECOPETL CB): Colombia’s state oil company was raised to “buy” from “hold” at Banco Santander, which cited its earnings growth potential. Ecopetrol slipped 0.3 percent to 4,070 pesos.

Mexico

Cement companies and steelmakers: The national statistics agency will announce October industrial production today. Economists forecast the gauge rose 5.4 percent from a year earlier, according to the median estimate of twelve analysts surveyed by Bloomberg.

Cemex SAB (CEMEXCPO MM), the largest cement maker in the Americas, dropped 1.2 percent to 12.25 pesos. Industrias CH SAB (ICHB MM), the largest Mexican steelmaker, declined 0.6 percent to 47.6 pesos.

Grupo Aeroportuario del Sureste SAB (ASURB MM): The operator of airports was cut to “hold” from “buy” at Banco Santander. The shares gained 1.5 percent to 69.8 pesos.

OHL Mexico SAB (OHLMEX* MM): The local unit of Spanish construction company Obrascon Huarte Lain SA reported third- quarter earnings of 832.3 million pesos ($67 million), according to a Dec. 10 filing with the Mexican stock exchange. The shares fell 0.3 percent to 24.45 pesos.

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net; Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at dpapadopoulos@bloomberg.net

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