Banco do Brasil, Paz del Rio, Tenaris: Latin Equity Preview

By Paulo Winterstein and James Attwood

July 1 (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 added 1.8 percent to 4,751.47 yesterday. In Brazil, preferred shares are the most commonly traded class of stock. Colombia's market was closed yesterday for a holiday.

Argentina

Tenaris SA (TS AF): The world's largest supplier of seamless steel pipes said it may face energy and supply disruptions at a unit in Venezuela, after the government nationalized a steel plant in the same complex. Venezuela may also decide to seize Tenaris's Tavsa steel-pipe unit and its Matesi iron-briquette facility, located near Ternium SA's Siderurgica del Orinoco plant, Tenaris said yesterday in its annual statement. Tenaris rose 2.4 percent to a record 119.60 pesos.

Brazil

Banco do Brasil SA (BBAS3 BS): Brazil's central bank increased the stake that foreign investors can hold in Latin America's biggest bank to 25 percent from 12.5 percent. The change will allow Banco do Brasil to adhere to the rules of the so-called Novo Mercado, which requires that 25 percent of shares be traded publicly, the central bank said in an e-mailed statement yesterday. Banco do Brasil fell 2.2 percent to 26.15 reais.

Banco Industrial & Comercial SA (BICB4 BS): The Sao Paulo- based lender, which has lost 28 percent since its October initial public offering, plans to buy back as much as 10 percent of outstanding preferred shares. The board of directors approved a plan to buy back as many as 9.42 million shares by June 27, 2009, BicBanco, as the Sao Paulo bank is known, said yesterday in a regulatory filing. The buyback would cost 77.7 million reais ($48.7 million) based on yesterday's closing price of 8.25 a preferred share. BicBanco fell 4.1 percent.

Colombia

Acerias Paz del Rio SA (PAZRIO CB): U.S. steel-sheet prices rose to a record $1,052 a ton in June, Purchasing magazine wrote yesterday in a report. Paz del Rio, Colombia's biggest steelmaker, fell 7.7 percent to 60 pesos when it last traded June 26.

Ecopetrol SA (ECOPETL CB): Colombia's state oil producer was reiterated as a ``buy'' at Medellin-based brokerage Bolsa y Renta. The stock, which rose 2.4 percent to 2,615 pesos when it last traded June 27, probably will rise to 3,000 pesos by the end of the year, analysts including Mauricio Restrepo Del Toro wrote in a June 27 note. Ecopetrol may pay a dividend of about 225 pesos a share next year, they wrote.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.
Last Updated: July 1, 2008 00:01 EDT