Alfa, B2W, Embraer, Minera Cerro Verde: Latin Equity Preview

By William Freebairn and Paulo Winterstein

July 14 (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 rose 0.1 percent to 4,344.8 on July 11. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

B2W Cia. Global do Varejo (BTOW3 BS): Brazil's biggest Internet retailer should benefit from expanding access to broadband services in Brazil, Credit Suisse analyst Marcel Moraes said July 11 in a note to clients. Brazilian Internet commerce rose 42 percent in the second quarter, in line with the analyst's estimate for B2W, Moraes wrote, citing E-BIT market research company's data. Rio de Janeiro-based B2W gained 1.5 percent to 55.83 reais.

Empresa Brasileira de Aeronautica SA (EMBR3 BS): The world's fourth-largest aircraft maker sold five EMB-190 jets to China's Kun Peng Airlines for $187.5 million. Delivery of the 98-seat planes are expected to begin this year, Sao Jose dos Campos, Brazil-based Embraer said July 11 in an e-mailed statement. Embraer fell 0.6 percent to 10.84 reais.

Chile

Cap SA (CAP CC): Chile's biggest steel producer plans to sell $550 million in new shares to finance a doubling of iron- ore production by 2012, the company said July 11. The announcement that Cap will decide on a steelmaking expansion plan within 30 days is ``positive,'' Larrain Vial SA analyst Juan Jose Ponce said in a phone interview from Santiago on July 11. Cap fell 7.2 percent to 18,832 pesos.

Mexico

Alfa SAB (ALFAA MM): Mexican auto production fell 1.2 percent in June from a year earlier, a ``lackluster'' performance, Banco Santander SA analysts Luis Miranda and Diego Laresgoiti wrote in a research report e-mailed July 11. ``If the current trend continues, we can expect to see weaker numbers'' in the second half, the analysts said. Alfa is the world's largest maker of engine blocks and heads. Alfa fell 0.6 percent to 66.24 pesos.

Peru

Sociedad Minera Cerro Verde (SMCV PE): The unit of Freeport McMoran Inc. that is Peru's third-largest copper producer failed to reach an agreement with workers in talks, union General Secretary Leoncio Amudio said in a phone interview July 11. The workers may go on strike July 16, he said. Cerro Verde fell 0.4 percent to $24.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net