Vale, CPFL, Gafisa, Cyrela, ICA: 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 1.6 percent to 4,038.99. In Brazil, preferred shares usually are the most-traded class of stock.


Vale SA (VALE5 BS): ThyssenKrupp AG, Germany’s largest steelmaker, and Vale will start production at an $8.2 billion steel-slabs joint venture in Brazil in two weeks, Friedrich-Wilhelm Schaefer, a vice president for the joint venture, told reporters in Sao Paulo. Vale, the world’s largest iron-ore producer, fell 0.9 percent to 43.9 reais.

CPFL Energia SA (CPFE3 BS): The Brazilian power distributor plans to invest 5 billion reais ($2.85 billion) through 2014 to expand its electricity network and cope with rising consumer demand, the newswire service for O Estado de S. Paulo newspaper said, citing the company’s vice president of distribution Helio Viana Pereira. CPFL fell 1.8 percent to 41.63 reais.

Brookfield Incorporacoes SA (BISA3 BS): The Brazilian real- estate company boosted its 2010 contracted sales forecast to between 3 billion reais and 3.5 billion reais, according to a regulatory filing. Brookfield fell 0.8 percent to 8.94 reais.

Petroleo Brasileiro SA (PETR4 BS): The state-controlled oil company’s targeted share sale date of on or before Sept. 30 isn’t definitive and may be delayed, two government officials said. The company also reported its total production of oil and natural gas rose 3.3 percent in July from the same month a year earlier. Petrobras fell 3.3 percent to 26.78 reais.

Cyrela Brazil Realty SA Empreendimentos e Participacoes (CYRE3 BS): Brazil’s biggest homebuilder was rated “hold” in new coverage at Deutsche Bank AG by equity analyst Esteban Polidura. The share-price forecast is 27 reais per share. Cyrela fell 2.1 percent to 23.29 reais.

Gafisa SA (GFSA3 BS): Brazil’s second-largest homebuilder by revenue was rated a new “hold” at Deutsche Bank by equity analyst Esteban Polidura. The share estimate is 15 reais. Gafisa fell 1.7 percent to 12.25 reais.


Bancolombia SA (PFBCOLO CB): Leasing Bancolombia SA, the leasing arm of Colombia’s biggest lender, sold 220 billion pesos ($121 million) worth of bonds in the local market. Bancolombia rose 0.2 percent to 26,420 pesos.


Empresas ICA SAB (ICA* MM): Prudential Real Estate Investors formed a venture with ViveICA, a housing unit of Empresas ICA, to build 35,000 homes over six years in Mexico, Prudential said in an e-mailed statement. Mexico’s largest construction company fell 0.8 percent to 31.03 pesos.

Megacable Holdings SAB (MEGACPO MM): Mexico’s largest cable-TV carrier said it obtained 2.1 billion pesos in loans from three local banks to refinance existing debt. Megacable fell 1.8 percent to 30.93 pesos.