Lan, Santos Brasil, Southern Copper, Vivo: Latin Equity Preview

By Paulo Winterstein and James Attwood

July 30 (Bloomberg) -- The following companies may have unusual price changes in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close.

The MSCI index of Latin American shares rose 2 percent to 4,229.35 yesterday. In Brazil, preferred shares are the most commonly traded class of stock. Markets in Peru were closed July 28 and 29 for holidays.

Brazil

Cia. Vale do Rio Doce (VALE5 BS): The debt rating of the world's biggest iron-ore producer was raised one level to BBB+ from BBB by Standard & Poor's. The sale of $11.45 billion in new shares ``adds to the company's liquidity and improves its ability to handle its aggressive capital expenditure program,'' analyst Reginaldo Takara wrote in a note yesterday. Vale rose 2.2 percent to 39 reais.

Iochpe-Maxion SA (MYPK3 BS): The maker of vehicle parts and Brazil's biggest maker of rail cars may show ``strong growth'' when it reports earnings today after the close of markets, Fator Corretora analyst Jacqueline Lison wrote in a note to clients yesterday. Earnings before interest, taxes, depreciation and amortization may jump 88 percent from the year-ago period as sales increase, the analyst wrote. Iochpe Maxion jumped 4 percent to 32.50 reais.

Paranapanema SA (PMAM4 BS): The Brazilian copper and tin producer raised the amount of bonds it plans to sell in the local market to 950 million reais ($605 million). The company, based in Santo Andre, Brazil, requested regulatory approval to issue 750 million reais of bonds due in 2019 and an additional 200 million reais due in 2010, according to a filing posted yesterday on the Web site of the securities regulator. Paranapanema rose 0.2 percent to 5.70 reais.

Santos Brasil Participacoes SA (STBP11 BS): Second-quarter profit at the first Brazilian port operator to list shares doubled from the year-earlier quarter to 17.8 million reais, Santos Brasil said yesterday in a regulatory filing. That's less than the 22.4 million reais average of 7 analyst estimates compiled by Bloomberg. Santos Brasil was unchanged at 26.50 reais.

Vivo Participacoes SA (VIVO4 BS): Brazil's largest mobile- phone company posted a net loss of 59.5 million reais after spending more to retain customers gained from its Telemig Celular Participacoes SA acquisition. Vivo rose 2.1 percent to 8.18 reais.

Chile

Lan Airlines SA (LAN CC): Chile's biggest air carrier reported an 11 percent jump in second-quarter profit, beating analysts' estimates. Net income increased to $47.2 million from $42.6 million a year earlier, Santiago-based Lan Airlines wrote in a statement distributed by Business Wire yesterday. That exceeded the $44.5 million average estimate of five analysts surveyed by Bloomberg. Lan rose 5.5 percent to 5,698 pesos.

Mexico

Cemex SAB (CEMEXCP MM): Mexico's peso traded near its strongest since 2002 on bets central bankers will raise the benchmark lending rate in August, signaling lower revenue for exporters. Cemex, North America's biggest cement maker, received more than four-fifths of 2007 revenue from exports. San Pedro Garza Garcia, Mexico-based Cemex rose 2.6 percent to 22.45 pesos.

Peru

Cia. de Minas Buenaventura (BVN PE): The world's seventh- largest gold producer has dropped 6.9 percent in New York trading in the last two days, when Peruvian markets were closed for a public holiday. Buenaventura rose 3 percent to $31 in Lima when it last traded July 25.

Southern Copper Corp. (PCU/C PE): A year-long strike at the Cananea copper mine has reduced profit at Southern Copper parent Grupo Mexico SAB by $650 million, Mexico City-based Grupo Mexico said yesterday in a statement. Workers went on strike at the Southern Copper mine on July 30, 2007. The stock added 1.8 percent to $28 on July 25.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.