BM&FBovespa, Gafisa, Vale, Petrobras: Brazilian Equity Movers

By Fabio Alves

Sept. 25 (Bloomberg) -- The following companies are having unusual price changes in Brazil trading. Stock symbols are in parentheses, and share prices are as of 9:25 a.m. New York time. Preferred shares are usually the most-traded class of stock.

The Bovespa index rose 2 percent to 50,845.98.

Brazilian homebuilders rallied after Banco Santander SA recommended buying the stocks, saying investors probably have overestimated the effects of tighter credit.

Gafisa SA (GFSA3 BS), the country's second-largest real estate developer, was raised to ``buy'' from ``underperform,'' while Cyrela Brazil Realty SA Empreendimentos e Participacoes (CYRE3 BS), Brazil's biggest, and MRV Engenharia e Participacoes SA (MRVE3 BS) were raised from ``hold,'' analysts including Marcello Milman wrote. They reiterated ``buy'' ratings on PDG Realty SA Empreendimentos e Participacoes (PDGR3 BS) and Rossi Residencial SA (RSID3 BS). Gafisa climbed 2.5 percent to 23.57 reais. Cyrela added 0.8 percent to 19.75 reais. MRV rose 1.5 percent to 24.36 reais. PDG Realty gained 1.5 percent to 14.70 reais. Rossi increased 3.1 percent to 6.65 reais.

ALL America Latina Logistica SA (ALLL11 BS) rose the most in a week, adding 2.5 percent to 16.20 reais. MRC Servicos Ferroviarios DPRS-AL Ltda. received a loan from Brazil's national development bank to build a rail terminal to be used by ALL, Latin America's largest railroad operator. The grain terminal is being built in Parana state, the bank said in a statement e- mailed yesterday.

BM&FBovespa SA (BVMF3 BS) gained for a second day, climbing 2.8 percent to 8.74 reais. The world's fourth-largest securities exchange said it plans to buy back as much as 3.5 percent of its shares, according to a statement on Brazil's securities regulator's Web site yesterday. The company must complete the transaction by Sept. 23, 2009, and will cancel the shares it acquires, according to the statement.

Petroleo Brasileiro SA (PETR4 BS) added 2.4 percent to 35.33 reais, the highest in a month. Brazil's state-controlled oil company said tests confirmed that there is a ``large'' deposit of natural gas and light crude oil in the offshore well known as Jupiter.

Cia. Vale do Rio Doce (VALE5 BS) rose for a second day, adding 2.1 percent to 34.88 reais. Cia. Vale do Rio Doce Chief Executive Officer Roger Agnelli said some Chinese steelmakers already have accepted an increase in the price of iron-ore, Epoca reported. Vale is still in talks with Chinese customers, who threatened to stop buying ore from Vale as the company sought price increases amid surging demand, the magazine said. Agnelli said the company is seeking increases of ``around'' 11 percent, Epoca reported.

To contact the reporter on this story: Fabio Alves in New York at falves3@bloomberg.net.