Bancolombia, Molinos, OHL Brasil, Urbi: Latin Equity Preview

By William Freebairn and James Attwood

Sept. 30 (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 11 percent yesterday to 3,003.75.

Argentina

Molinos Rio de la Plata SA (MOLI AF): The Buenos Aires-based food producer bought 25 million of its own shares at 10 pesos apiece, or about 10 percent of shares outstanding, it said in a regulatory filing yesterday. Molinos rose 6.3 percent to 9.35 pesos.

Telecom Argentina SA (TECO2 AF): The country's second- biggest telephone company had its ``buy'' rating reiterated at Buenos Aires-based Grupo SBS. The stock probably will rise to 15.83 pesos, analyst Mariano Kruskevich wrote in a note yesterday, citing prospects for Internet business growth and price increases. Telecom fell 10 percent to 7.65 pesos.

Brazil

Obrascon Huarte Lain Brasil SA (OHLB3 BS): Brazil's second- biggest toll-road operator said yesterday in a regulatory filing that its debt is denominated in reais, and that it generates cash flow to supply its capital needs. The real yesterday fell 6.1 percent against the dollar, the biggest drop since January 1999. OHL Brasil, the Brazilian unit of Spanish builder Obrascon Huarte Lain SA, dropped 7.8 percent to 17.34 reais.

Rossi Residencial SA (RSID3 BS): Fator Corretora analyst Eduardo Silveira reiterated his ``outperform'' rating on Brazil's third-largest homebuilder, writing in a note yesterday that the sale of debentures will allow Rossi to meet its forecast for projects developed in 2008. Recent credit cost concerns have led to selling of more leveraged companies such as Rossi, even though the company's fundamentals have not changed, he wrote. Rossi tumbled 21 percent to 5.21 reais.

Colombia

Bancolombia SA (PFBCOLO CB): The American depositary receipts of Colombia's biggest lender (CIB US) dropped 7.3 percent after the U.S. House of Representatives rejected a $700 billion plan to rescue the financial system. In Bogota, preferred shares fell 1 percent to close at 15,440 pesos at 2 p.m. New York time.

Textiles Fabricato Tejicondor SA (FABRI CB): The U.S. House yesterday approved extending trade preferences for Colombia, Peru and more than 100 other developing nations, setting up a possible vote in the Senate this week. The bill, which would suspend $1 billion in tariffs, will continue for a year two separate measures that allow developing countries to ship their products duty-free to the U.S. Textile maker Fabricato, which gets about a fifth of its revenue from exports, fell 2.2 percent to 27.20 pesos.

Mexico

Cia. Minera Autlan SAB (AUTLANB MM): The Mexican manganese miner, whose stock more than tripled this year, may make acquisitions rather than seek a buyer, Chairman Jose Antonio Rivero said in an interview yesterday. Autlan hired Lehman Brothers Holdings Inc. earlier this year to analyze options including a possible sale. Autlan fell 6.5 percent to 70.65 pesos.

Urbi Desarrollos Urbanos SAB (URBI* MM): Fitch Ratings reiterated the BB issuer default rating of Mexico's third-largest homebuilder by sales, citing its land holdings and ``good financial position.'' Urbi's presence in eight states and in several market segments reduces risk, Fitch said in a note yesterday. Urbi fell 2.9 percent to 25.24 pesos.

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