Aracruz, Durango, Masisa, Petrobras: Latin Equity Preview

By Paulo Winterstein and James Attwood

July 2 (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 2.6 percent to 4,626.33 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Aracruz Celulose SA (ARCZ6 BS): The world's biggest maker of eucalyptus pulp said its board approved the acquisition of Boise Cascade Co.'s Brazilian unit for $47.1 million to increase its forestry supplies. The purchase includes 15,400 hectares (38,054 acres) of land in southern Brazil, Aracruz said yesterday in an e-mailed statement. About 10,200 hectares of the land is planted with eucalyptus, the Aracruz, Brazil-based company said. Aracruz fell 1.9 percent to 11.50 reais.

Cosan SA Industria & Comercio (CSAN3 BS) and Sao Martinho SA (SMTO3 BS): U.S. Senator Richard Lugar is scheduled to speak at the American Enterprise Institute's conference on global food prices today. The Indiana senator will recommend that the U.S. lift its 54-cents-a-gallon tariff on ethanol imports from Brazil, the world's biggest exporter, according to the Wall Street Journal. Cosan, the world's biggest sugarcane processor, added 1.8 percent to 28.19 reais. Sao Martinho, the second-biggest Brazilian maker of sugar and ethanol by market value, fell 0.9 percent to 25.67 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil's state-controlled oil company will start production of oil in the pre-salt Jubarte field in September, instead of October, Reuters said yesterday, citing president Luiz Inacio Lula da Silva. The pre-salt Jubarte field should produce up to 15,000 barrels of oil in the first week of September, Reuters cited Lula saying. Petrobras, as the Rio de Janeiro-based company is known, fell 0.3 percent to 46.09 reais.

Rede Empresas de Energia Eletrica SA (REDE3 BS): Fitch Ratings may raise the credit rating one level to B+, four levels below investment grade, for the electric company that recently swapped assets with EDP Energias do Brasil. Better operating performance and ``improving prospects of the group's financial profile'' led analyst Pagsi Jimenez to raise the ratings outlook to positive, according to a statement e-mailed yesterday. Rede fell 2.6 percent to 6.09 reais.

Chile

Masisa SA (MASISA CC): Chile's biggest maker of wooden boards used in construction will retain ownership of Forestal Argentina SA after an agreement to sell a stake in the company expired. Masisa failed to get regulatory approval by the June 30 deadline, the company wrote in a regulatory filing yesterday. Masisa agreed last year to sell a 90 percent stake in the company known as Fasa to a unit of Diversified International Timber Holdings LLC and Chile's GrupoNueva SA. Masisa fell 0.8 percent to 90.1 pesos.

Colombia

Almacenes Exito SA (EXITO CB): Brokerage Bolsa y Renta SA advised clients to buy shares in Colombia's biggest retailer, saying in a note yesterday that its decline has been ``excessive.'' Exito fell 3.2 percent to 12,300 pesos, extending a loss this year to 28 percent.

Mexico

Corporacion Durango SAB (CODUSA* MM): Mexico's largest paper producer had its credit rating cut three levels to CCC+ by Standard & Poor's, seven levels below investment grade. The rating cut reflects concern about Durango's ``inability to fully pass on increasing raw material and energy costs,'' analyst Marcela Duenas wrote in a note. Durango fell 3.6 percent to 7 pesos.

Peru

Southern Copper Corp. (PCU/C PE) and Cia. de Minas Buenaventura SA (BVN PE): A national strike by Peruvian mine workers, which enters a third day today, will continue until Congress sets a date for a vote on new industry legislation, Luis Castillo, general secretary of the Mining Federation, said yesterday in a telephone interview. Southern Copper, the world's seventh-largest copper producer, fell 1.9 percent to $105.45. Buenaventura, the world's seventh-largest gold producer, gained 0.9 percent to $66.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.