Alfa, Bolsa Mexicana, JBS, Rede, Telmex: Latin Equity Preview

By Paulo Winterstein and Alexander Ragir

Oct. 22 (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.

Brazil's Bovespa index futures fell 5.2 percent to 38,000 at 8:43 a.m. in New York. The MSCI Latin America Index slid 5.5 percent to 2,202.56 yesterday.

Brazil

Brazilian Banks: President Luiz Inacio Lula da Silva authorized federally controlled banks Banco do Brasil SA (BBAS3 BS) and Caixa Economica Federal to buy stakes in non-government financial institutions, the latest move to ease a credit crunch that's hurting small and medium-size lenders. Banco Daycoval SA (DAYC4 BS) gained 5 percent to 5.88 reais. Banco Panamericano SA (BPMN4 BS) rose 0.9 percent to 3.23 reais. Banco Industrial e Comercial SA (BICB4 BS) fell 0.3 percent to 2.94 reais. Banco Pine SA (PINE4 BS) gained 6.3 percent to 5.40 reais. Banco ABC Brasil SA (ABCB4 BS) climbed 0.6 percent to 3.32 reais. Banco do Brasil SA (BBAS3 BS) fell 1.2 percent to 16.40 reais.

JBS SA (JBSS3 BS): The world's largest beef producer had its debt rating confirmed by Moody's Investors Service after U.S. antitrust regulators sued to block the acquisition of National Beef Packing Co. JBS's rating, which may still be cut, was kept at B1, four levels below investment grade, as the move to block the acquisition allays concern the company could lack cash to repay debt, Moody's said yesterday. JBS jumped 10 percent to 3.40 reais.

PDG Realty SA Empreendimentos e Participacoes (PDGR3 BS): The Brazilian real estate company plans to buy back as much as 10 percent of its outstanding shares after the stock lost more than half of its value. PDG rose 5.4 percent to 12.10 reais.

Obrascon Huarte Lain Brasil SA (OHLB3 BS): Brazil's second- biggest toll-road operator was raised to ``neutral'' from ``underperform'' by analyst Sara Delfim at Merrill Lynch & Co. OHL Brasil rose 3.5 percent to 16.10 reais.

Rede Empresas de Energia Eletrica SA (REDE3 BS): The electricity distributor will sell about 17.6 million new preferred shares to existing shareholders. The private placement, to be priced at 6.67 reais per share, will be submitted for shareholder approval at a Nov. 6 meeting, Rede said yesterday. Rede fell 1.7 percent to 2.94 reais.

Mexico

Alfa SAB (ALFAA MM): The world's largest maker of aluminum engine heads and blocks reported a third-quarter loss because of a drop in the value of financial derivatives linked to the Mexican peso. Alfa posted a loss of 1.77 billion pesos ($170 million). The loss was more than the 1.32 billion forecast by Mexico City brokerage Actinver SA. Alfa fell 8.7 percent to 31.74 pesos.

Bolsa Mexicana de Valores SAB (BOLSA MM): The owner of Mexico's stock exchange said third-quarter profit grew fivefold as listings of publicly traded debt rose and cost increases slowed. Net income rose to 177.6 million pesos, or 58 centavos a share, from 34.5 million pesos a year earlier. Bolsa Mexicana rose 2.1 percent to 7.15 pesos.

Telefonos de Mexico SAB (TELMEXL MM): The country's biggest land-line phone company said third-quarter profit fell 43 percent to 5.44 billion pesos from a year earlier as competitors took customers. Net income from continuing operations dropped 28 percent, the company said in a statement yesterday. Telmex fell 5.4 percent to 13.58 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;