Banorte, EEB, Petrobras, Sonda: 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 rose 0.3 percent to 4,377.37.

Brazil

BR Properties SA (BRPR3) (BRPR3 BS): Fitch Ratings upgraded the long-term foreign- and local-currency issuer default ratings of the Brazilian real estate company to BB- from B+, revising its outlook to stable from positive, according to a statement. The shares rose 0.2 percent to 17.48 reais.

MMX Mineracao e Metalicos SA (MMXM3) (MMXM3 BS): The iron-ore mining company controlled by billionaire Eike Batista was rated “overweight” in new coverage at JPMorgan Chase & Co. The brokerage has a share-price estimate of 14 reais. The stock retreated 0.1 percent to 8.75 reais.

Petroleo Brasileiro SA (PETR4) (PETR4 BS): The state-controlled oil producer’s plan to more than double output will boost cash flow and eliminate the need to tap debt markets after about 10 years, Chief Financial Officer Almir Barbassa said yesterday in an interview in Rio de Janeiro. The stock advanced 2.3 percent to 23.50 reais.

Chile

Sonda SA (SONDA) : Chile’s largest information technology company had second-quarter profit of 9.63 billion pesos ($21 million), up from from 8.8 billion pesos a year ago, according to data posted on the securities regulator’s website. The stock slipped 0.4 percent to 1,280 pesos.

Colombia

Empresa de Energia de Bogota SA (EEB) : The Peruvian Camisea group said it signed an accord to link the Colombian company known as EEB to its main natural gas pipeline, speeding up distribution on Peru’s south coast. EEB, which is investing $280 million in a pipeline from Lima to the south coastal city of Ica, will be supplied with 45 million cubic feet per day of gas, the Camisea group said yesterday in an e-mailed statement. EEB shares gained 1.7 percent to 1,470 pesos.

Fabricato SA (FABRI CB): Colombia’s biggest textile maker reported second-quarter profit of 2.7 billion pesos ($1.5 million), compared with a loss of 5.6 billion pesos a year earlier. The company also named Juan Carlos Cadavid as the acting chief executive officer starting Aug. 1. The shares slid 1.4 percent to 69 pesos.

Mexico

Axtel SAB (AXTELCPO MM): Mexico’s second-largest land-line phone company was raised to “buy” from “hold” at Banco Santander SA. The brokerage set a share-price estimate of 8.70 pesos for 2012. The stock rallied 1.1 percent to 6.69 pesos.

Grupo Financiero Banorte SAB (GFNORTEO MM): Mexico’s third- largest bank by outstanding loans reported second-quarter net income of 2.05 billion pesos ($176 million). Outstanding loans rose to 312 billion pesos, the company said in an e-mailed statement. The shares fell 0.2 percent to 52.94 pesos.

Urbi Desarrollos Urbanos SAB (URBI* MM): The homebuilder reported second-quarter net income of 659 million pesos and sales of 3.87 billion pesos. The shares declined 0.3 percent to 22.98 pesos.

To contact the reporter on this story: Bryan Gibel in New York at bgibel@bloomberg.net

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

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