Bradesco, Gruma, Log-In, Posadas, Tenaris: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 14 (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 6.5 percent to 2,033.21 on Oct. 10. Markets in Argentina and Colombia were closed yesterday for a holiday.

Argentina

Tenaris SA (TS AF): The world's biggest maker of seamless steel tubes for pipelines rallied 13 percent in Milan trading yesterday when Argentine markets were closed for a public holiday. Tenaris fell 6.8 percent to 39.6 pesos in Buenos Aires Oct. 10.

Brazil

Banco Bradesco SA (BBDC4 BS): Brazil's biggest non- government bank has ``good loan growth'' and a ``strong deposit base,'' said Will Landers, who manages $5 billion in Latin American equities at BlackRock Inc., in a Bloomberg Television interview yesterday. Landers said he favors Bradesco, Banco Itau Holding Financiera SA (ITAU4 BS) and Uniao de Bancos Brasileiros SA (UBBR11 BS) because they ``lack the liquidity issues'' of other global lenders. Bradesco rose 22 percent to 26.99 reais. Itau surged 23 percent to 28.24 reais. Unibanco gained 23 percent to 16.50 reais.

Log-In Logistica Intermodal SA (LOGN3 BS): The Brazilian container-shipping company reported forecasts for third-quarter transported volume which were ``well above market expectations,'' Fator Corretora analyst Renato Pinto wrote in a note yesterday. Third-quarter earnings should be ``strong'' due to lower oil prices, Pinto wrote. Log-In rose 7.5 percent to 5.32 reais.

Colombia

Ecopetrol SA (ECOPETL CB): Colombia's state-controlled oil company signed an agreement with its Brazilian counterpart Petroleo Brasileiro SA (PETR4 BS) to jointly explore and produce oil and refined products. Ecopetrol shares fell 9 percent to 2,085 pesos on Oct. 10. Its American depositary receipts jumped 15 percent in New York yesterday when Colombian markets were closed for a public holiday.

Mexico

Gruma SAB (GRUMAB MM): The world's largest maker of corn flour has sufficient cashflow to meet working capital needs, Banco Santander SA said in a research note e-mailed yesterday. Santander said it is reviewing its ``hold'' rating after Gruma said yesterday it will take a non-cash loss of $291 million on third-quarter earnings because of financial derivatives. Gruma, which was suspended from trading yesterday by the stock exchange, fell 13 percent to 14.30 pesos on Oct. 10.

Grupo Posadas SAB (POSADASA MM): The owner of the Fiesta Americana hotel chain in Mexico met margin calls of $25 million from counterparties in financial derivative transactions. Posadas is meeting all its financial obligations, the company said in a statement e-mailed to the Mexico City stock exchange. Posadas fell 12 percent to 14.10 pesos when it last traded Oct. 8.

Peru

Southern Copper Corp. (PCU/C PE): The unit of Mexico's biggest mining company has hedging contracts for 179,443 metric tons of copper that expire this year. Southern Copper does not hold hedging contracts for next year or beyond that, parent company Grupo Mexico SAB said in a filing with Mexico's stock exchange yesterday. Southern Copper rose 23 percent to $14.15.

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.