America Movil, M. Dias Branco, MMX, Oma: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 3 (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 8.5 percent yesterday to 2,912.3.

Brazil

M. Dias Branco SA (MDIA3 BS): Brazil's biggest maker of pasta and cookies was rated ``outperform'' in new coverage at Fator Corretora. The market leader will likely expand nationally and increase the use of installed capacity, allowing for greater sales without additional investments, analyst Renato Prado wrote in a note yesterday. M. Dias rose 1 percent to 20 reais.

MMX Mineracao e Metalicos SA (MMXM3 BS): The Brazilian mining company controlled by billionaire Eike Batista is a ``major'' takeover target after shares dropped 46 percent in the past week, Credit Suisse analysts Roger Downey said. ``Even under extreme assumptions, MMX is trading at dirt cheap valuation levels,'' he said yesterday in a note to clients. MMX dropped 12 percent to 7.25 reais.

Mexico

America Movil SAB (AMXL MM): Latin America's largest mobile- phone company was upgraded to ``buy'' from ``hold'' by equity analysts at Standard & Poor's. America Movil will gain from ``strong'' growth in Brazil, Colombia and Peru even as Mexican competition increases, the agency said in a research note yesterday. America Movil fell 6.3 percent to 23.93 pesos.

Grupo Aeroportuario del Centro Norte SAB (OMAB MM): The smallest of the three Mexican airport operators not owned by the government said passenger traffic this year may decline as much as 1 percent and its profit margin will narrow by 2 percentage points. Passenger traffic will decline in the period from September to December compared with a year earlier, Grupo Aeroportuario del Centro Norte said in a statement to the Mexican stock exchange. Oma, as the company is known, fell 5.4 percent to 15.15 pesos.

Peru

Southern Copper Corp. (PCU/C PE): Peruvian copper production fell 0.9 percent in August from a year earlier on declines at mines run by Southern Copper, a unit of Mexico's largest mining company. Output fell to 108,200 metric tons, the Energy and Mines Ministry said in a statement e-mailed yesterday. Southern Copper fell 14 percent to $15.80.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.