Brazilian Stock Movers: Cemig, Eletrobras and Klabin Were Active

The following companies had unusual price changes in Sao Paulo trading. Stock symbols are in parentheses, and prices are as of the market close. Preferred shares are usually the most-traded class of stock.

The Bovespa Index fell 1.5 percent to 53,797.91.

Centrais Eletricas Brasileiras SA (ELET6 BS) advanced 2.5 percent to 17.90 reais. South America’s largest power generator, known as Eletrobras, reported that net income dropped to 1.27 billion reais ($632 million) from 1.28 billion reais a year earlier. The result was above the average estimate for 856 million reais in adjusted earnings among analysts surveyed by Bloomberg.

Cia. Energetica de Minas Gerais (CMIG4 BS) rose 0.9 percent to 34.60 reais. The Brazilian utility forecast in a regulatory filing Monday that earnings before interest, taxes, depreciation and amortization will be 5.4 billion reais to 6.2 billion reais in 2012 and 2013, 5.56 billion reais to 6.4 billion reais in 2014, and 5.74 billion reais to 6.6 billion reais in 2015 and 2016. “Given that most of the higher guidance is concentrated in the long-end of the curve from 2014 onward, we believe the market will take some time to incorporate this new guidance into the company’s share price and valuation,” analysts Marcio Prado, Danilo Vitti and Maria Carolina Carneiro, at Banco Santander Brasil, wrote in a note to clients dated today.

Klabin SA (KLBN4 BS) rose 2.4 percent to 8.11 reais. Latin America’s biggest paper maker was raised to the equivalent of buy at Itau BBA. Analysts cited expectations of “solid earnings growth,” driven in the short term by “higher cost efficiency.”

Banco Santander Brasil SA (SANB11 BS) fell 1.1 percent to 15.87 reais. The bank’s chief executive officer, Marcial Portela, said in an interview with newspaper Valor Economico today there are no negotiations under way to sell a significant minority stake in the Brazilian unit of Banco Santander SA.

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