EAC Advances on Bets Chavez Reign May End: Copenhagen Mover
EAC A/S (EAC), the Danish owner of Venezuela’s biggest meat producer, jumped the most in 30 months in Copenhagen on speculation President Hugo Chavez’s reign may end soon, boosting growth in the South American country.
EAC rose as much as 12 percent, the most since July 2010. The stock advanced 9.8 percent to 118 kroner at 12:44 p.m. in Danish capital, with trading volume at 301 percent of the three- month daily average.
Chavez is recovering from cancer surgery in Cuba and may not return to Caracas in time to be sworn in for a third, six- year term. Opposition parties contend he must show up for the Jan. 10 ceremony before Congress or be declared ineligible to govern. During his rule, Chavez has seized more than 1,000 companies and imposed currency and price controls as part of his push to turn South America’s biggest oil producer into a socialist country.
“The EAC stock seems to be gaining on the news on Chavez,” Morten Byrdal, head of equity trading at Silkeborg, Denmark-based Jyske Bank A/S, said by phone. Government news from Venezuela frequently triggers price moves, he said.
Vice President Nicolas Maduro has warned the opposition against attempting a “coup.” Maduro said Jan. 4 that Chavez opponents are distorting Venezuela’s constitution by saying he must show up for the swearing-in ceremony. The constitution allows for the Supreme Court to administer the oath in exceptional circumstances, a fact that Maduro said makes the ceremony a mere “formality” that can be delayed.
Copenhagen-based EAC, which also owns a moving services division, lowered its 2012 sales and profit forecasts on Nov. 15, citing lower prices for its meat products in Venezuela.
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