Localiza, Petrobras Energia, Porto Seguro: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 2 (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 0.1 percent yesterday to 3,181.93.

Argentina

Petrobras Energia Participaciones SA (PBE AF): The Argentine unit of Brazil's state-controlled oil producer received regulatory approval to increase ownership of two natural gas blocks. Petrobras Energia agreed to buy Burlington Resources Argentina Holdings Ltd., which owns 26 percent of the Sierra Chata block and 52 percent of the Parva Negra exploration block, for $77.6 million, Petrobras Energia wrote in a statement on the Argentine securities regulator's Web site yesterday. Petrobras Energia Participacoes rose 6.6 percent to 3.25 pesos. Operating unit Petrobras Energia SA (PESA AF) fell 0.6 percent to 8.9 pesos.

Brazil

Localiza Rent a Car SA (RENT3 BS): Latin America's biggest car-rental company was ``excessively penalized'' for canceling a sale of 300 million reais of debentures, Fator Corretora analyst Renato Prado wrote in a note yesterday. The company should be able to compensate for capacity limits by raising fees and increasing usage rates for vehicles, Prado wrote. Localiza fell 7.5 percent to 9.18 reais.

Porto Seguro SA (PSSA3 BS): Brazil's fourth-largest insurance company was reiterated ``outperform'' at Banco Fator Corretora after Porto Seguro said its claim ratio in August decreased from the first half of the year, signaling a recovery in profitability, analyst Lika Takahashi wrote in a note yesterday. Porto Seguro rose 2.6 percent to 13.85 reais.

Mexico

Wal-Mart de Mexico SAB (WALMEXV MM): Latin America's largest retailer may say next week that third-quarter earnings before interest, taxes, depreciation and amortization as a percentage of sales declined and sales rose 9 percent, Actinver SA said. The results may be ``weak'' as a result of slowing consumer spending in September, analyst Marisol Huerta wrote in a report e-mailed yesterday. Walmex, as the company is known, is scheduled to report results Oct. 7. Walmex fell 1.7 percent to 36.96 pesos.

Peru

Bolsa de Valores de Lima SA (BVLAC1 PE): NC&F Inversiones SA (NCFC1 PE), a Peruvian investment company, boosted its stake in the operator of the country's stock exchange to 10.97 percent from 10.35 percent. NC&F is the exchange's largest shareholder, Bolsa de Valores de Lima said in a filing on the securities regulator's Web site yesterday. BVL rose 9.1 percent to 12 soles when it last traded Sept. 30. NC&F was unchanged at 73 centimos when it last traded Sept. 9.

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.