Brazilian Stock Movers: CPFL Energia, Eletropaulo, Oi and Rossi
The following companies are having unusual price changes in Sao Paulo trading. Stock symbols are in parentheses, and prices are as of 12:29 p.m. local time. Preferred shares are usually the most-traded class of stock.
The Bovespa (IBOV) Index rose 2.2 percent to 55,924.84
Eletropaulo Metropolitana SA (ELPL4 BS), a unit of AES Corp. (AES) that is Brazil’s biggest power utility by market value, fell 11 percent to 22.64 reais, poised for the lowest close since October 2008. The country’s regulator cut the rates Eletropaulo charges consumers by 9.3 percent, effective tomorrow.
CPFL Energia SA (CPFE3) (CPFE3 BS), Brazil’s second-biggest power utility by market capitalization, fell 4.2 percent to 24.58 reais, the steepest intraday drop since May 21. The stock was cut to equivalent of sell from neutral at Barclays Capital on valuation.
Oi SA (OIBR4) (OIBR4 BS), a fixed and mobile telecommunications operator, advanced 4.7 percent to 8.90 reais. Banco Bradesco SA (BBDC4)’s brokerage raised its recommendation to the equivalent of buy from neutral, citing expectations for improved revenue and a new dividend distribution plan.
Rossi Residencial SA (RSID3) (RSID3 BS) rallied 6.5 percent to 4.97 reais. A close at that level would be the highest since June 22. The homebuilder dismissed about 100 employees, newspaper Valor Economico reported, citing an unidentified source. Rossi’s press office didn’t immediate comment when contacted by Bloomberg News.
To contact the reporter on this story: Denyse Godoy in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com