Banco Frances, Cemex, Petrobras, MMX: Latin Equity Preview

By James Attwood and [bn:PRSN=1] William Freebairn []

Aug. 19 (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 1.5 percent to 3,818.35. Markets in Argentina and Colombia were closed yesterday for a holiday.

Argentina

BBVA Banco Frances SA (FRAN AF): Argentina's second-biggest private bank had its ``underweight'' recommendation reiterated at JPMorgan Chase & Co., analysts including Saul Martinez wrote in an Aug.15 note to clients, citing low earnings ``visibility'' and the country's macroeconomic environment. Frances rose 1.6 percent to 5.65 pesos on Aug. 15.

Molinos Rio de la Plata SA (MOLI AF): Soybeans for November delivery rose 5.7 percent in Chicago yesterday, after two days of losses, while Argentina's markets were closed. Molinos, which exports soybean oil and other food products, fell 1 percent to 7.25 pesos on Aug. 15.

Telecom Argentina SA (TECO2 AF): Argentina's pension funds, known as AFJPs, bought $16.9 million worth of Telecom Argentina stock in July, the AFJPs' biggest net investment among local stocks for the month, Banco Santander SA wrote in a note to clients yesterday. The country's No. 2 telephone company rose 1.2 percent to 8.15 pesos on Aug. 15.

Brazil

MMX Mineracao e Metalicos SA (MMXM3 BS): The mining company controlled by Brazilian billionaire Eike Batista plans to boost iron-ore exports after it reached an accord to use Cia. Vale do Rio Doce's Itaguai port terminal in Rio de Janeiro state. The agreement will allow MMX to increase iron-ore output this year to 7 million metric tons, of which 40 percent will be exported, Investor Relations Director Nelson Guitti said yesterday in a conference call. Rio de Janeiro-based MMX, which previously said it would produce 6.2 million tons, fell 11 percent to 11 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil's state-controlled oil company awarded $1.88 billion in contracts for the construction of an oil platform, O Estado de S. Paulo reported yesterday. Petrobras, as the company is known, canceled an auction for the contract twice because of high construction costs, according to the report. The final price is $200 million more than lowest bid in the first auction, Estado said. Rio de Janeiro-based Petrobras fell 3 percent to 31.68 reais.

Colombia

Bancolombia SA (BCOLO CB): Net income rose 1.1 percent to 85.4 billion pesos ($45.5 million) in July from 84.4 billion pesos in June, Colombia's biggest lender wrote in a statement posted on the securities regulator's Web site after trading closed Aug. 15. Bancolombia rose 0.4 percent to 14,680 pesos on Aug. 15.

Mexico

Cemex SAB (CEMEXCP MM): Venezuela will take control of the local unit of the largest cement maker in the Americas today, Energy Minister Rafael Ramirez said in a television broadcast yesterday. Cemex did not reach agreement with the government to sell control of its unit there to the state, Ramirez said. Venezuela said it has agreed to buy a controlling stake in the local units of Lafarge SA and Holcim Ltd. Cemex fell 3 percent to 21.53 pesos.

To contact the reporters on this story: James Attwood in Santiago at jattwood3@bloomberg.net; William Freebairn in Mexico City at wfreebairn@bloomberg.net.