Cencosud, Even Construtora, Pao de Acucar: Latin Equity Preview

By William Freebairn and Paulo Winterstein

July 11 (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 4,341.77 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Cia. Brasileira de Distribuicao Grupo Pao de Acucar SA (PCAR4 BS): Brazil's biggest food retailer said sales at stores open for more than a year rose 9.8 percent in June on increased demand for electronics and home products. Total sales in all stores rose 23 percent in June to 1.39 billion reais ($863 million), the Sao Paulo-based company said yesterday in an e- mailed statement. Second-quarter same-store sales rose 7.3 percent. Grupo Pao de Acucar gained 4.4 percent to 35.50 reais.

Even Construtora e Incorporadora SA (EVEN3 BS): Brazil's fifth-largest real estate developer had 434 million reais of presales contracts at the end of the second quarter, compared with 179 million reais a year earlier. Even began work on 683 million reais of new projects, compared with 248 million reais in the second quarter of last year, the Sao Paulo-based builder said yesterday in a regulatory filing. Even fell 7.7 percent to 7.34 reais.

Gol Linhas Aereas Inteligentes SA (GOLL4 BS): The Varig unit of Brazil's second-biggest airline signed an agreement with American Airlines that allows the companies to sell tickets for each others' flights, Gol said in a regulatory filing yesterday. Sao Paulo-based Gol gained 3.2 percent to 14.63 reais.

Chile

La Polar SA (LAPOLAR CC), Cencosud SA (CENCOSUD CC) and Distribucion y Servicio D&S SA (DYS CC): Chile's central bank last night raised the benchmark lending rate to a nine-year high of 7.25 percent from the current 6.75 percent. The rate increase may worsen the outlook for retail sales as the Chilean economy slows, Mariana Larrain, a retail analyst at brokerage BCI Corredor de Bolsa SA, said in an interview yesterday. Department store operator La Polar fell 1.5 percent to 1,822.90 pesos. Cencosud, Chile's largest retailer, dropped 2.1 percent to 1,439.70 pesos. D&S, the country's largest grocer, slipped 1.6 percent to 184.74 pesos.

Mexico

Empresas ICA SAB (ICA* MM): Mexico's biggest construction company and two partners signed a previously announced 15.3 billion peso ($1.48 billion) contract to build a 21-station subway line in the nation's capital, ICA said yesterday in an e- mailed statement. Work will begin immediately and be completed by the end of 2011, the company said. ICA fell 1.3 percent to 63.55 pesos.

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