Cap, Cemex, Ecopetrol, Sonda, Telmex, Weg: Latin Equity Preview

By James Attwood and William Freebairn

July 23 (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 1.7 percent to 4,311.27 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

TPI - Triunfo Participacoes & Investimentos SA (TPIS3 BS): The Brazilian operator of highways and harbors will pay 70.2 million reais ($44.5 million) for a plot of land on the coast of Sao Paulo state. Triunfo plans to pay 40.2 million reais in cash, with the remaining 30 million reais paid in shares of a new company that Triunfo will establish. Triunfo added 0.2 percent to 5 reais.

Weg SA (WEGE3 BS): The Jaragua do Sul, Brazil-based electrical equipment maker reported ``good'' second-quarter earnings, wrote Fator Corretora analyst Jacqueline Lison, citing revenue growth of 19 percent, reduction of costs and the maintenance of operating margins ``at high levels.'' In a note sent yesterday, the analyst reiterated her ``buy'' rating on Weg, which fell 1 percent to 18.25 reais.

Chile

Cap SA (CAP CC): Chile's biggest steel and iron-ore producer hasn't entered into any talks to be acquired, Chairman Roberto de Andraca said. Cap shares have gained by a third this year on speculation that higher prices and expanding output will boost earnings growth and increase its appeal as a takeover target. ``There isn't any negotiation; if there was it would be a subject for public information,'' de Andraca said in an interview. ``Anyone who wants to buy a stake has to buy it on the stock market.'' Cap fell 2.4 percent to 18,049 pesos yesterday.

Compania de Telecomunicaciones de Chile SA (CTCA CC): The country's biggest fixed-line phone company, known as Telefonica Chile, may report a drop in second-quarter earnings today on higher costs. Net income probably declined to 3.56 billion pesos ($7.22 million), the average estimate of three analysts surveyed by Bloomberg. Telefonica Chile fell 1.7 percent to 800 pesos.

Multiexport Foods SA (MULTIFOO CC): Chile, the world's second-largest producer of salmon, said a virus that causes anemia in the fish will affect 3 percent of its production this year. Commercial output of salmon will total about 700,000 metric tons in 2008, little changed from last year, as contaminated fish are destroyed, Felix Inostroza, the head of the Chilean fishing regulator, said at a news conference yesterday in Santiago. Multiexport Foods, the world's sixth largest salmon producer, was little changed at 150.01 pesos.

Sonda SA (SONDA CC): Chile's biggest independent software company reported a 14 percent increase in first-half profit as sales jumped 62 percent. Net income for the first six months rose to 13.3 billion pesos ($25 million) from 11.7 billion pesos a year earlier, according to data posted yesterday on the regulator's Web site. Santiago-based Sonda, which didn't give separate second-quarter results, rose 1.6 percent to 680 pesos.

Colombia

Ecopetrol SA (ECOPETL CB): Colombia's state energy company will start trading shares in New York in September, Portafolio reported, citing mining and energy minister Hernan Martinez. The company, which sold a 10 percent stake on Colombia's stock market last year, probably will double profit this year on higher oil prices, the newspaper reported yesterday. Ecopetrol fell 1.2 percent to 2,480 pesos.

Mexico

Cemex SAB (CEMEXCP MM): North America's largest cement maker said second-quarter profit fell 27 percent to $444 million as construction slowed in its largest markets. Sales rose 29 percent to $6.35 billion because of the acquisition last year of Australian building materials company Rinker Group Ltd. Cemex shares rose 2.2 percent to 23.31 pesos.

Telefonos de Mexico SAB (TELMEXL MM): Mexico's biggest fixed-line phone company said net income from continuing operations dropped 13 percent to 6.19 billion pesos ($616.7 million) in the second quarter. Revenue declined 6.3 percent to 30.9 billion pesos as it lost subscribers. Telmex, as the company is known, fell 1.2 percent to 12.49 pesos.

To contact the reporters on this story: James Attwood in Santiago at jattwood3@bloomberg.net; William Freebairn in Mexico City at wfreebairn@bloomberg.net.