Comercial Mexicana, CCU, Unibanco, Vale: Latin Equity Preview

By William Freebairn and Paulo Winterstein

July 17 (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 rose 1.1 percent to 4,407.88 yesterday. Chile's markets were closed yesterday for a holiday. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Cia. Vale do Rio Doce (VALE5 BS): The world's biggest iron- ore producer said yesterday that it is raising about 19.43 billion reais ($12.2 billion) by selling 256.9 million common shares for 46.28 reais each and 189.1 million preferred shares for 39.9 reais each. Vale preferred shares fell 2 percent to 42.60 reais, while voting shares fell 1.4 percent to 49.20 reais.

Uniao de Bancos Brasileiros SA (UBBR11 BS): Brazil's fourth- largest non-government bank, known as Unibanco, said its stockholders approved an 11-for-10 stock split. Holders of the bank's units, which represent one preferred share of Unibanco and one preferred share of Unibanco Holding, will get one additional unit for every 10 held. Unibanco gained 7.7 percent to 20.35 reais.

Chile

Cia. Cervecerias Unidas SA (CCU CC): Chile's largest brewer is trading for less than other beverage companies, creating ``an attractive buying opportunity,'' Banco Santander SA analysts Diego Celedon and Alexander Robarts wrote in a research report e- mailed July 15. Its profit margin will remain stable this year, and the company will benefit from an acquisition in Argentina, the analysts wrote, citing a meeting with company executives. CCU, as the company is known, fell 1.1 percent to 2,820 pesos.

Mexico

Controladora Comercial Mexicana SAB (COMERUBC MM): Mexico's third-largest supermarket chain is ``a compelling investment in turbulent times'' after announcing plans to create a publicly traded real estate investment trust, Credit Suisse Group analysts including Tufic Salem wrote in a research report e-mailed yesterday. Recent declines in the share price are an ``opportunity to pick up a deep-value stock,'' the analysts wrote. Comercial Mexicana rose 0.9 percent to 28.30 pesos.

Peru

Cia. de Minas Buenaventura (BVN PE): The world's seventh- largest gold producer said it reopened its Orcopampa mine after protesters ended the blockade of an access road. The five-day roadblock reduced output by 4,000 ounces, Buenaventura said in a statement e-mailed yesterday. Buenaventura fell 0.9 percent to $64.80.

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.