Banco do Brasil, Lan, Mexichem, Pampa: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Sept. 10 (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 5.1 percent yesterday to 3,368.57.

Argentina

Pampa Holdings SA (PAMP AR): Argentina's biggest electricity holding company plans to buy up to $30 million of its own shares. Pampa will pay between 1.1 peso and 1.7 peso a share over four months, it wrote in a statement yesterday. Pampa fell 4.3 percent to 1.35 peso, extending a loss this year to 44 percent.

Brazil

Banco do Brasil SA (BBAS3 BS) and Uniao de Bancos Brasileiros SA (UBBR11 BS): Banco do Brasil, Latin America's biggest bank by assets, and Unibanco, Brazil's third-largest non- government bank, are Deutsche Bank AG's top picks among Brazilian banks on their cheaper prices and earnings growth. Banco do Brasil trades at a price 8 times estimated 2009 earnings, and Unibanco trades at 7.5 times estimated earnings, compared with more than 9 times estimated profit for Banco Itau Holding Financeira SA and Banco Bradesco SA, analyst Mario Pierry wrote in a note yesterday. Banco do Brasil fell 2.1 percent to 21.49 reais. Unibanco fell 3.3 percent to 18.29 reais.

Klabin SA (KLBN4 BS): Corrugated paper sales in August likely rose 1 percent from the year-ago period, the Brazilian Corrugated Paper Association said in a preview, Fator Corretora strategist Lika Takahashi wrote in a note yesterday. Klabin rose 1.6 percent to 4.38 reais.

Chile

Lan Airlines SA (LAN CC): Chile's biggest air carrier said its passenger traffic rose 16 percent and capacity increased 15 percent in August. As a result, the airline's so-called load factor rose 0.9 of a percentage point to 78.7 percent, Lan wrote in a statement distributed yesterday by Business Wire. Lan rose 0.3 percent to 6,300 pesos.

Sociedad Quimica y Minera de Chile SA (SQM/B CC): Chile's biggest fertilizer producer is unaware of any special circumstances to explain the fall in its share price, the Santiago-based company wrote in a statement yesterday, responding to a stock exchange query. SQM tumbled 8.2 percent to 14,878 pesos, extending the longest losing streak in two years.

Mexico

Grupo Televisa SAB (TLEVICPO MM): Mexico's biggest broadcaster may increase 2009 revenue 15 percent from a year earlier even as the U.S. and Mexican economies slow, Bank of Nova Scotia said in a research note sent to clients yesterday. Shares may trade at 63.03 pesos in 12 months, analyst Raul Ochoa said, keeping his ``neutral'' rating on the stock. Televisa fell 1.1 percent to 49.58 pesos.

Mexichem SAB (MEXCHEM* MM): Latin America's biggest maker of plastic pipe used in construction may begin a promotional effort to sell new shares at the end of September, IXE Grupo Financiero said in a research report yesterday. The plan to sell $300 million to $500 million in new shares may dilute the value of existing holders by as little as 8 percent, IXE said. Mexichem fell 1.6 percent to 23.68 pesos.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.