Chocolates, CSN, Gerdau, Modelo, Usiminas: Latin Equity Preview

By Paulo Winterstein and William Freebairn

July 28 (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 was little changed at 4,167.59 on July 25. Markets in Peru are closed today for a holiday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Gerdau SA (GGBR4 BS), Usinas Siderurgicas de Minas Gerais SA (USIM5 BS) and Cia. Siderurgica Nacional SA (CSNA3 BS): The drop in stock prices of Brazil's three largest steelmakers during July ``exceeded expectations,'' Deutsche Bank AG analyst David Martin said July 25 in a phone interview from New York. ``It's hard to believe, given the global demand scenario, that steel stocks will go lower.'' Gerdau, Latin America's biggest steelmaker, fell 2.3 percent to 30.15 reais. Usiminas, as the second-biggest Brazilian steelmaker is known, fell 3.8 percent to 62.55 reais and CSN, the third-biggest, fell 1.5 percent.

Vivo Participacoes SA (VIVO4 BS): Brazil's biggest mobile-phone company will likely report narrowing margins on earnings before interest, taxes, depreciation and amortization when it announces second-quarter results July 30, Brascan Corretora analyst Felipe Cunha wrote in a note to clients. A reduction in margins to an estimated 22.4 percent from 29 percent in the first quarter will likely lead to a drop in the shares, Cunha wrote in the note dated July 25. Vivo gained 2 percent to 8.32 reais.

Colombia

Grupo Nacional de Chocolates SA (CHOCOLA CB): Colombia's biggest food company said first-half profit more than doubled. Net income for the first six months rose to 123 billion pesos ($68.6 million) from 49.6 billion a year earlier, the Medellin-based company wrote in a statement posted on the regulator's Web site July 25. It didn't provide separate second-quarter results. Chocolates fell 0.4 percent to 14,920 pesos.

Mexico

Grupo Modelo SAB (GMODELOC MM): Mexico's largest brewer said second-quarter net income fell 18 percent to 2.58 billion pesos ($249.8 million). Sales rose less than 1 percent to 20.4 billion pesos, the company said in a statement e-mailed July 25. Modelo fell 0.1 percent to 51 pesos.

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