Banorte, CMPC, Cosan, Cresud, Sare: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Sept. 15 (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 rose 3.4 percent Sept. 12 to 3,535.77.

Argentina

Cresud SACIF y A (CRES AF): Argentina's Buenos Aires Cereals Exchange predicts another week of scarce rainfall in the Pampas region, worsening a drought that may affect grain crops. Rainfall in the agricultural zone, known as the Pampas, will be scarce through Sept. 20, exchange climatologist Eduardo Sierra said in a weekly weather report. Rainfall between Sept. 20 and Sept. 26 will be ``scarce'' to ``moderate,'' he wrote in a forecast e-mailed Sept. 12. Cresud, a Buenos Aires-based agricultural company, rose 0.6 percent to 3.39 pesos.

Brazil

Cosan SA Industria & Comercio (CSAN3 BS) and Sao Martinho SA (SMTO3 BS): The European Parliament's vote to require at least 5 percent of road transport fuel in 2015 to come from biofuels is potentially negative for Cosan and Sao Martinho, Brazil's biggest publicly traded makers of ethanol, as it is a reduction of the previous target of 10 percent, Fator Corretora chief analyst Lika Takahashi wrote in a Sept. 12 note. Cosan, the world's biggest sugarcane processor, rose 3.2 percent to 19.60 reais. Sao Martinho fell 0.7 percent to 21.20 reais.

Chile

Empresas CMPC SA (CMPC CC): Chile's No. 2 pulp producer probably will rise 32 percent to 20,519 pesos in 12 months on prospects of higher prices and production, Celfin Capital said. Analysts including Cesar Perez-Novoa gave the Matte Group- controlled company an initial ``buy'' rating, they wrote in a Sept. 12 research note. CMPC rose 3 percent to 15,499 pesos.

Mexico

Grupo Financiero Banorte SA (GFNORTEO MM): Mexico's largest publicly traded lender won't see a ``meaningful impact'' from non-performing loans in its credit card division because they account for a small portion of assets, Joaquin Lopez-Doriga, the company's managing director of corporate affairs, said in an interview Sept. 12. Banorte rose 1 percent to 36.56 pesos.

Sare Holding SAB (SARE MM): Standard & Poor's announcement Sept. 12 that it may lower the credit rating of Mexico's fifth- largest homebuilder reflects slowing sales in the Mexican home market, brokerage Actinver said. Reduced public mortgage financing, higher credit costs and stricter lending requirements will slow growth for homebuilders, Actinver said in a research note. Sare was unchanged at 7.50 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.