America Movil, Banco Macro, Klabin, Vivo: Latin Equity Preview

By Paulo Winterstein and [bn:PRSN=1] William Freebairn []

Aug. 21 (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. Preferred shares are usually the most-traded class of stock in Brazil.

The MSCI Latin America Index rose 3.9 percent to 3,976.18.

Argentina

Banco Macro SA (BMA AF): Argentina's fourth-largest private lender has the best risk-return mix of the country's five listed banks, partly because of its low government bond holdings and a share-buyback program, Grupo SBS analyst Paula Kritz wrote in a research note yesterday. Macro bought 854,267 of its own shares yesterday for an average of 5.98 pesos each, it wrote in a regulatory filing. The shares fell 0.3 percent to 5.96 pesos.

Brazil

Klabin SA (KLBN4 BS): Brazil's fourth-largest pulp and paper maker had the outlook for its debt rating reduced to ``stable'' from ``positive'' by Standard & Poor's Rating Services on concern that the cash generation needed for a higher rating will take ``longer than anticipated.'' Analyst Marcelo Costa yesterday also affirmed Klabin's BB credit rating, two levels below investment grade. Klabin rose 0.6 percent to 4.94 reais.

Vivo Participacoes SA (VIVO4 BS) and Tim Participacoes SA (TCSL4 BS): Brazilian mobile-phone companies added 2.16 million new subscribers in July, an increase of 16 percent from the year- ago period, Brazil's telecommunications regulator said yesterday in an e-mailed statement. Vivo, Brazil's biggest mobile-phone company, accounted for 30.25 percent of those additions, down from 30.36 percent in June, while second-biggest Tim accounted for 25.26 percent, down from 25.4 percent in the previous month. Vivo rose 1 percent to 8.03 reais. Tim rose 0.6 percent to 3.65 reais.

Colombia

Bancolombia SA (PFBCOLO CB): Foreign investors may shift their focus away from Bancolombia, which has the country's only easy-to-trade American depositary receipts, and toward other local stocks, if authorities remove capital controls, Greg Lesko, who helps manage about $600 million in emerging market equities at Deltec Asset Management Corp. in New York, said by phone yesterday. The government is studying a regulation that would remove restrictions on stock investments, Portafolio newspaper reported Aug. 19, citing President Alvaro Uribe. Bancolombia's preferred shares rose 3.4 percent to 15,200 pesos.

Mexico

America Movil SAB (AMXL MM): Latin America's largest mobile- phone company gained market share in Brazil in July, that country's telecommunications regulator Anatel said on its Web site yesterday. The company's share of new subscribers declined from June, Pali Research said in a research note. America Movil fell 1.7 percent to 26.01 pesos.

Cemex SAB (CEMEXCP MM): The nationalization by Venezuela's government of the local unit of North America's largest cement producer will reduce earnings before interest, taxes, depreciation and amortization by about 3.7 percent, IXE Grupo Financiero said in a research note yesterday. The company is likely to use any proceeds it receives to reduce debt, IXE analysts Rodrigo Heredia and Patricio Rivera wrote in the note, where they kept their ``buy'' rating on the company. Cemex was unchanged at 20.92 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.