Axtel, Plascar, Usiminas, Vale, Walmex: Latin Equity Preview

By William Freebairn and James Attwood

Sept. 5 (Bloomberg) -- The following companies may have unusual price changes today 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 fell 4 percent yesterday to 3,634.62.

Brazil

Banco Itau Holding Financeira SA (ITAU4 BS): Brazil's second-biggest non-government bank hired executives from UBS AG, Hyposwiss Privatbank Ltd. and Rothschild Bank AG as it expands international operations, Itau said yesterday in a statement. Itau fell 3.3 percent to 30.10 reais.

Cia. Vale do Rio Doce (VALE5 BS): The world's largest iron- ore producer halted operations at its French subsidiary because of a problem with an electrical furnace. The unit, Rio Doce Manganese Europe, will be shut until February, reducing ferroalloy output by 45,000 metric tons, Rio de Janeiro-based Vale said yesterday in an e-mailed statement. The unit has operated at 60 percent of capacity since an accident last August, Vale said. The stock fell 3.1 percent to 35.51 reais.

Usinas Siderurgicas de Minas Gerais SA (USIM5 BS), Cia. Siderurgica Nacional SA (CSNA3 BS), Plascar Participacoes Industriais SA (PLAS3 BS): Autoworkers in Brazil scheduled a Sept. 6 vote for a strike designed to win wage increases, Metalworkers Union spokeswoman Vanilda Oliveira said yesterday. Usiminas, as the second-biggest Brazilian steelmaker is known, and CSN, the third-biggest, are suppliers to Brazil's auto industry. Plascar, an auto-parts supplier, fell 11 percent to 3.30 reais. Usiminas dropped 5.7 percent to 48.25 reais. CSN declined 7.6 percent to 48.21 reais.

Chile

Sociedad Quimica y Minera de Chile SA (SQM/B CC): Chile's biggest fertilizer exporter is a buying opportunity after losing 16 percent in six days on speculation that slowing global growth will crimp crop-nutrient demand, said Banchile Inversiones analyst Christian Contreras. Global fertilizer prices probably will remain high even as other commodities such as oil fall, Contreras said by phone. The stock probably will rise to 26,000 pesos by end-2009, he said. SQM slid 4.6 percent to 17,302 pesos.

Mexico

Axtel SAB (AXTELCPO MM): Mexico's second-largest fixed-line phone company was raised to ``hold'' from ``sell'' by Vector Casa de Bolsa. The company is trading at multiples to its earnings before interest, taxes, depreciation and amortization that are 24 percent below its historical average, analyst Martin Lara wrote in a research note e-mailed yesterday. Axtel rose 1.3 percent to 13.63 pesos.

Wal-Mart de Mexico SAB (WALMEXV MM): Latin America's largest retailer yesterday said that August sales increased 7.4 percent from a year earlier. That was more than the 5.5 percent forecast by Credit Suisse in an Aug. 28 note. Walmex, as the company is known, dropped 3.3 percent to 37.63 pesos.

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