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Cap, Gruma, Petrobras, Tele Norte: 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 0.2 percent to 3,897.87.

Brazil

Phone companies: Brazil’s Senate approved a law allowing telephone carriers and foreign companies to offer cable television, creating opportunities for Tele Norte Leste Participacoes SA (TNLP3) (TNLP4 BS) and America Movil SAB.

Tele Norte Leste Participacoes, the telephone company known as Oi, slipped 0.8 percent to 21.63 reais. Brasil Telecom SA (BRTO4) (BRTO4 BS), the Brazilian phone company, slid 1.3 percent to 11.70 reais. Telemar Norte Leste SA (TMAR5) (TMAR5 BS) added 1.6 percent to 45 reais.

Gol Linhas Aereas Inteligentes SA (GOLL4) (GOLL4 BS): Brazil’s second-biggest airline by market value said total demand rose 16.2 percent in July from the same period last year, according to a regulatory filing. Domestic demand climbed 19.6 percent and total occupancy reached 75.8 percent. The stock decreased 2.1 percent to 10.28 reais.

Localiza Rent a Car SA (RENT3) (RENT3 BS): Latin America’s biggest car-rental company will invest 2.7 billion reais ($1.7 billion) in 100,000 cars in the second half of this year and 2012, according to a regulatory filing. The stock increased 1.8 percent to 25 reais.

Petroleo Brasileiro SA (PETR4) (PETR4 BS): The state-controlled oil company said it started operations at its P-56 platform in the Marlim Sul field, located in the offshore Campos Basin, according to a regulatory filing. The shares declined 1.1 percent to 20.76 reais.

Vale SA (VALE3) (VALE5 BS): The biggest exporter of iron ore said Global Coal Director Decio Amaral has resigned to pursue new opportunities in Brazil. Vale will seek a replacement to fill the role, Brett Fraser, manager for external relations, said by phone. The stock retreated 0.3 percent to 39.75 reais.

Chile

Cap SA (CAP) : Chile’s largest steel and iron producer agreed to double the processing capacity of its Agua de Mar water desalination project in northern Chile to 400 liters per second. A unit of Cap will invest about $183 million in the project, the company said in a statement posted on the website of Chile’s securities regulator. The shares fell 1.6 percent to 19,200 pesos.

Colombia

Banco Davivienda SA (PFDAVVND) : Colombia’s third-largest bank plans to sell as much as $350 million in bonds abroad. The board of the Bogota-based bank approved the sale yesterday, according to a statement on the website of Colombia’s securities regulator. The board also plans to list shares on exchanges abroad, according to the statement. The stock retreated 2 percent to 21,420 pesos.

Mexico

Gruma SAB (GRUMAB MM): The world’s largest producer of corn and wheat tortillas said Raul Pelaez Cano resigned as the company’s chief executive officer less than nine months after taking the position. A committee headed by Chairman Roberto Gonzalez Barrera will temporarily oversee the company’s operations as the board searches for a new CEO, Gruma said in a statement to the Mexican stock exchange. The shares dropped 1.3 percent to 22.43 pesos.

Grupo Mexico SAB (GMEXICOB MM): Two judges made opposing rulings on legal challenges from Grupo Aeroportuario del Pacifico SAB (GAPB MM) and its controlling shareholders. Aeroportuario del Pacifico and its shareholders are seeking to halt the government’s authorization of Grupo Mexico’s bid to purchase 30 percent or more of the airport operator’s shares.

Grupo Mexico, the nation’s largest mining company, closed at 39.64 pesos. Aeroportuario del Pacifico slid 0.6 percent to 47.71 pesos.

Grupo Financiero Banorte SAB (GFNORTEO MM): The financial- services firm signed an agreement to merge its pension fund with Afore XXI, the fund 50 percent owned by the Instituto Mexicano del Seguro Social. Banorte fell 2 percent to 44.09 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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