Buenaventura, CSN, Gap, Molinas, Vale: Latin Equity Preview

By William Freebairn and Alexander Ragir

Sept. 9 (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 0.5 percent yesterday to 3,547.68.

Argentina

Molinos Rio de la Plata SA (MOLI AF): Argentina's farming areas will get a ``gradual'' increase in rainfall that will reach a peak next month, the Buenos Aires Cereals Exchange said. Until then, farms in central and western areas will be under ``stress'' because of a lack of precipitation, the exchange said yesterday in a weather forecast distributed by e-mail. Molinos, which makes food products such as soybean oil, fell 2.3 percent to 7.35 pesos.

Brazil

Cia. Siderurgica Nacional SA (CSNA3 BS): Brazil's third- biggest steelmaker had its debt rating raised one level by Moody's Investors Services to Ba1, one notch below investment grade. The rating change for CSN, as the Rio de Janeiro-based company is known, reflects the company's ``maintenance of strong debt protection metrics and liquidity in recent years,'' Moody's analysts Richard Sippli and Alexander Carpenter wrote in a statement yesterday. CSN fell 3.8 percent to 46.56 reais.

Magnesita Refratarios SA (MAGG3 BS): The acquisition of LWB Refractories GMBH is positive, ``contributing to improve its client and geographic diversification,'' Moody's analysts Richard Sippli and Alexander Carpenter wrote in a statement yesterday. The purchase won't affect Magnesita's liquidity, which ``should remain adequate, based on its robust cash position and manageable debt maturities,'' the analysts wrote. Magnesita, Latin America's largest maker of specialty tiles used in steel blast furnaces, rose 4.8 percent to 18.45 reais.

Net Servicos de Comunicacao SA (NETC4 BS): Brazil's biggest cable-TV provider, along with Sky Brasil Servicios Ltda, plan to invest about 1.6 billion reais ($920 million) to develop high- definition television services, Gazeta Mercantil reported. Net Servicos fell 2.3 percent to 17.69 reais.

Cia. Vale do Rio Doce (VALE5 BS): The world's biggest iron- ore producer, asked Nippon Steel Corp. and its Japanese rivals to pay 12 percent more for the material after agreeing in February to an increase of at least 65 percent, two people familiar with the negotiations said. Vale fell 3.5 percent to 34.85 reais.

Chile

Compania de Telecomunicaciones de Chile SA (CTCA CC): Investors probably overreacted to a proposal by authorities to ease telephone service pricing rules since competitive conditions will impede significant price increases, analysts at Banchile Inversiones wrote in a research note yesterday. The country's biggest fixed-line carrier rose for the sixth time in seven days, climbing 4.4 percent to a three-month-high of 820 pesos.

Sociedad Quimica y Minera de Chile SA (SQM/B CC): The short- and mid-term price outlook for crop nutrients remains favorable, analysts at Banchile Inversiones wrote in a research note yesterday. Chile's biggest fertilizer exporter retreated for an eighth day, losing 5.3 percent to 16,200 pesos, extending its longest losing streak in two years.

Mexico

Grupo Aeroportuario del Pacifico SAB (GAPB MM): The biggest private Mexican airport operator said passenger traffic fell 14 percent in August as domestic travel slumped. That was more than the 11 percent decline forecast by Grupo Financiero Interacciones in a research note Sept. 3. Gap, as the company is known, was little changed at 28.98 pesos.

Grupo Aeroportuario del Sureste SAB (ASURB MM): Mexico's second-biggest government airport operator reported August passenger traffic ``significantly above'' forecasts of Credit Suisse Group AG. The airport operator known as Asur benefited from high hotel occupancy rates in Cancun, analysts Vanessa Quiroga and Alan Solis wrote in a research note e-mailed yesterday. Asur rose 1.1 percent to 52.21 pesos.

Peru

Cia. de Minas Buenaventura (BVN PE): The world's seventh- largest gold producer was reduced to ``hold'' from ``buy'' by Banco Santander SA, which cited rising costs and lower forecasts for metal prices in a note yesterday. Buenaventura fell 3.4 percent to $18.35.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;