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Ecopetrol, Petrobras, Souza Cruz: 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 0.6 percent to 3,863.47.

Argentina

Transportadora de Gas del Sur SA (TGSU2) (TGSU2 AF): The natural- gas distributor reported second-quarter net income of 5 centavos per share, according to a statement from the company. It reported a net loss of 3 centavos per share during the same period last year. The shares slid 0.7 percent to 2.96 pesos.

Brazil

Cia. Energetica de Sao Paulo (CESP6 BS): The utility controlled by the Brazilian state of Sao Paulo said net income declined 7.6 percent to 72.6 million reais ($46 million) in the second quarter from 78.5 million reais a year earlier, according to a regulatory filing. The shares were unchanged at 29.40 reais.

Gerdau SA (GGBR4) (GGBR4 BS): Latin America’s largest steelmaker said it was fined 337,000 reais ($213,800) amid a Brazil tax investigation involving coal purchases by steelmakers. Gerdauis “investigating the matter,” the Porto Alegre-based company said in an e-mailed statement. The stock climbed 0.9 percent to 12.31 reais.

Light SA (LIGT3) (LIGT3 BS): Brazil’s second-biggest electricity distributor said net income declined 67 percent to 45.3 million reais in the second quarter from 137.7 million reais a year earlier, according to a regulatory filing. The shares slipped less than 0.1 percent to 25.87 reais.

OSX Brasil SA (OSXB3) (OSXB3 BS): The shipbuilding startup controlled by billionaire Eike Batista is offering to pay banks more than it originally proposed to take out an $850 million loan, four people familiar with the matter said. The shares climbed 5.8 percent to 328 reais.

Petroleo Brasileiro SA (PETR4) (PETR4 BS): The state-controlled oil company’s investment plans may be affected by the slump in global stock and bond markets, Folha de S.Paulo reported, citing Chief Executive Jose Sergio Gabrielli. Petrobras, as the company is known, needs to raise as much as $91 billion to finance investments in coming years and the recent decline in its shares may make that effort more difficult, Folha said, citing Gabrielli. The stock fell 2.3 percent to 20.18 reais.

Souza Cruz SA (CRUZ3) (CRUZ3 BS): Brazil’s largest tobacco company named Andrea Martini chief executive officer from January, when Dante Letti will retire, according to a regulatory filing. The shares advanced 1.1 percent to 17.30 reais.

Colombia

Ecopetrol SA (ECOPETL) : The oil company’s shares fell below a discount price for investors paying cash to take part in Colombia’s largest stock sale in about four years amid a U.S. market rout. The company is seeking to sell 676 million shares at 3,700 pesos per share, or 3,608 pesos per share for cash payment. The stock closed 0.5 percent lower at 3,660 pesos, after falling to 3,600 pesos.

Mexico

Corp. GEO SAB (GEOB MM): Mexico’s second-largest homebuilder was raised to “buy” from “hold” at Deutsche Bank AG. The brokerage has a 12-month share-price estimate of 30 pesos. The shares rallied 6.5 percent to 22.89 pesos.

Grupo Televisa SA (TLEVICPO) : The world’s largest Spanish-language broadcaster has set a price of 69.9 pesos per shares known as CPOs in a capital increase, the company said in an e-mailed statement. Televisa shareholders will have until Aug. 22 to announce their intention to buy the new stocks, the company said. The shares climbed 1 percent to 49.62 pesos.

Urbi Desarrollos Urbanos SAB (URBI* MM): The company, which develops and markets low-income residential housing, was cut to “hold” from “buy” at Deutsche Bank AG. The brokerage has a 12-month share-price estimate of 29 pesos. The stock jumped 4.7 percent to 25.39 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 papadopoulos@bloomberg.net

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