Lan, Klabin Segall, Modelo, Petrobras: Latin Equity Preview

By William Freebairn and James Attwood

Oct. 20 (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 rose 3.9 percent to 2,156.89 on Oct. 17. Trading in Brazil and Argentina will begin one hour later local time starting today to accommodate daylight-saving time. Trading hours will be unchanged relative to New York time.

Argentina

Molinos Rio de la Plata SA (MOLI AF): Argentine farmers will sow a record soybean crop this year after rains improved soil moisture, the Buenos Aires Cereals Exchange said. Soybean planting will rise 8 percent to 18.2 million hectares (45 million acres), from 16.9 million hectares a year earlier, the exchange said Oct. 17 in an e-mailed report. Molinos, which exports soybean oil, rose 2.8 percent to 9.25 pesos.

Brazil


Klabin Segall SA (KSSA3 BS): The real estate developer that said its contracted sales almost doubled in the third quarter maintained its ``hold'' rating from Banco Fator Corretora analyst Eduardo Silveira. The company's concentration of low- income developments ``could pose a risk to the company'' should Brazil's economy slow, Silveira wrote. Klabin Segall is also among the most highly leveraged builders in the country, he wrote in an Oct. 17 note. Klabin Segall rose 5.4 percent to 2.95 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil's state- controlled oil company delayed the planned release of a 2009- 2013 investment plan until December as an international credit crunch made it harder to assess the cost of capital, Petrobras said Oct. 17. The plan, scheduled to have been released this month, was to have increased investment to help develop Tupi and new fields being found near it off Brazil's coast, according to Chief Financial Officer Almir Barbassa. Petrobras rose 3.6 percent to 22.99 reais.

Chile

Empresa Nacional de Electricidad SA (ENDESA CC): Wholesale electricity prices in Chile will rise 13 percent in the most populated areas next month as a strengthening U.S. dollar boosts the cost of fuel for power producers. The increase will add 5.6 percent to residential power bills in central Chile, the state-run National Energy Commission said Oct. 17. Endesa, the country's biggest generator, rose 2.2 percent to 756.2 pesos.

Lan Airlines SA (LAN CC): Chile's biggest air carrier probably will report ``pretty favorable'' third-quarter earnings, Patricio Hernandez, an analyst at Banchile Inversiones, said in an Oct. 17 interview. He advises clients to buy the stock, estimating it will rise to 7,400 pesos as lower fuel costs help offset any slowdown in traffic. Lan gained 3.8 percent to 5,399.20 pesos.

Mexico

Controladora Comercial Mexicana SAB (COMERUBC MM): The owner of supermarkets and Costco stores in Mexico was profitable until the start of this month, the executive in charge of its bankruptcy restructuring, Jose Calvillo, said in an interview Oct. 17. The decline of the peso left it with $1 billion in currency derivative liabilities and unable to refinance debt. Comercial Mexicana fell 3 percent to 3.63 pesos.

Grupo Modelo SAB (GMODELOC MM): Mexico's largest brewer may say third-quarter earnings before interest, taxes, depreciation and amortization fell 4.4 percent from a year earlier, Citigroup Inc.'s Banamex unit said in a research report Oct. 17. The company's Ebitda may fall because of bad weather, high food inflation and fewer remittances to Mexico from U.S. workers, analysts wrote. Modelo is scheduled to report results this week, according to Bloomberg data. Modelo rose 4 percent to 40.92 pesos.

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