Aracruz, Galicia, Macro, Mexichem, Natura: Latin Equity Preview

By Paulo Winterstein and James Attwood

Oct. 27 (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 slipped 0.1 percent Oct. 24 to 3,271.92.

Argentina

Grupo Financiero Galicia SA (GGAL AF), Banco Patagonia SA (BPAT AF), BBVA Banco Frances SA (FRAN AF) and Banco Macro SA (BMA AF): Argentine banks face the possibility of a run on deposits after the government announced plans last week to nationalize pension funds, said Paul McNamara, who helps manage $1.2 billion of emerging market assets at Augustus Asset Managers Ltd., in an Oct. 24 interview. Frances, the country's second- biggest private bank, fell 7.7 percent to 2.53 pesos, while Macro dropped 6.6 percent to 2.82 pesos. Galicia, the holding company for the nation's biggest private bank, tumbled 13 percent to 68 centavos and Patagonia lost 13 percent to 94.5 centavos.

Brazil

Aracruz Celulose SA (ARCZ6 BS) and Sadia SA (SDIA4 BS): Brazil's state development bank, known as BNDES, may help exporting companies hurt by losses from foreign currency derivatives, Reuters reported Oct. 24, citing the bank's president, Luciano Coutinho. Coutinho said the bank has already talked with some companies affected by the real's decline against the dollar, without saying how the bank would help companies Reuters reported. Aracruz, the pulp producer that reported a charge of 2.1 billion reais for derivatives contracts, fell 14 percent to 2.20 reais. Sadia, the food company that had a 760 million real loss from currency derivatives, fell 4.9 percent to 4.26 reais.

Natura SA (NATU3 BS): Brazil's biggest cosmetics company may perform well during market volatility because it has almost no derivatives and has ``quite foreseeable'' financial results, Fator Corretora analyst Renato Prado wrote in an Oct. 24 note. Natura, rated ``hold'' by Prado, fell 1 percent to 17.33 reais.

Mexico

Mexichem SAB (MEXCHEM* MM): The largest maker of plastic pipes in Latin America said third-quarter net income fell 63 percent to 224.1 million pesos ($16.6 million) from 609.2 million pesos, in an Oct. 24 statement. Mexichem rose 2.9 percent to 10.16 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.