Invermar, Mexichem, Natura, Sao Martinho: Latin Equity Preview

By Paulo Winterstein and William Freebairn

June 30 (Bloomberg) -- The following stocks may have significant gains or losses in Latin American markets. Symbols are in parentheses after company names, and stock prices are from the last session.

The MSCI index of Latin American shares fell 0.4 percent to 4,669.74 on June 27. Colombian markets are closed today for a holiday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Natura Cosmeticos SA (NATU3 BS): The board of Brazil's biggest cosmetics company approved plans to open subsidiaries in Spain and the Netherlands, Natura said in a June 27 filing, without specifying when the expansion will take place. Natura rose 3.1 percent to 16.20 reais.

Sao Martinho SA (SMTO3 BS): Brazil's second-biggest sugar and ethanol producer said on June 27 that fourth-quarter revenue rose 26 percent from the year-ago period to 231.5 million reais ($145.1 million). That's more than the 183 million reais average of two estimates compiled by Bloomberg. Sao Martinho rose 1 percent to 25.75 reais.

Tele Norte Leste Participacoes SA (TNLP4 BS): Oi, as the operating unit of Brazil's largest telephone company is known, will form a joint venture with Cantv, Venezuela's state-owned telephone company, to build a ring of fiber-optic cable around South America, Sergio Andrade, chairman of Brazilian construction firm Andrade Gutierrez SA, said in a June 27 interview in Caracas. Andrade Gutierrez is one of the largest shareholders of Oi's parent company, Telemar Participacoes SA. Oi dropped 2.1 percent to 39.90 reais.

Usinas Siderurgicas de Minas Gerais SA (USIM5 BS): Brazil's second-biggest steelmaker paid 72 million reais ($45 million) for land on Sepetiba Bay in southeastern Brazil, where it plans to build a port terminal. The terminal will begin operations in 2012, Usiminas said June 27 in a regulatory filing. Usiminas added 0.8 percent to 79.70 reais.

Chile

Multiexport Foods SA (MULTIFOO CC) and Invertec Pesquera Mar de Chiloe SA (INVERMAR CC): The value of salmon exports from Chile, the world's second-largest producer, may drop in 2008 for the first time in seven years after a virus caused anemia in some fish, an industry group said. Shipments may fall ``a bit'' from $2.17 billion last year, the first decline since a price slump in 2001, Cesar Barros, the president of the Santiago-based Association of Chile's Salmon Industry AG, said in a telephone interview June 27. Multiexport, the world's sixth largest salmon producer, rose 5.7 percent to 166.98 pesos. Invermar, a rival producer, gained 5.9 percent to 360 pesos.

Mexico

Alfa SAB (ALFAA MM) and Mexichem SAB (MEXCHEM* MM): Alfa, the world's largest maker of engine blocks, and Mexichem, the biggest plastic pipe maker in Latin America, agreed with a third company to consider investing more than $2 billion to build a chemical plant in Peru. The chairmen of the three companies met with Peru President Alan Garcia to discuss the investment, state news agency Andina reported June 27. Alfa rose 0.7 percent to 74.46 pesos. Mexichem was unchanged at 84.99 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; William Freebairn in Mexico City at wfreebairn@bloomberg.net.
Last Updated: June 30, 2008 00:00 EDT