Banco do Brasil, Gissa, Telemar, Vitro: Latin Equity Preview

By [bn:PRSN=1] William Freebairn [] and Paulo Winterstein

Nov. 24 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index fell 6.9 percent Nov. 21 to 1,659.16. Peruvian markets were closed Nov. 21 for a holiday.

Argentina

Cresud SACIF y A (CRES AF) and Molinos Rio de la Plata SA (MOLI AF): Argentina’s wheat and corn crops were damaged by drought and frost, prompting the government and the Buenos Aires Cereals Exchange to lower their estimates for this year’s harvests. Wheat production will total 10 million metric tons this year, down from a previous estimate of 10.5 million tons, the exchange said Nov. 21. Agricultural company Cresud fell 7.5 percent to 1.85 pesos and Molinos, a producer of bulk grains, fell 0.6 percent to 8.85 pesos.

Brazil

Lojas Renner SA (LREN3 BS): Aberdeen Asset Management Plc increased its stake in Renner, Brazil’s biggest publicly traded clothing retailer, during the past two months. The Aberdeen, Scotland-based money manager said it raised its stake to about 18.2 million voting shares, or 15 percent of the company’s capital stock, from 11 percent in September. Renner fell 12 percent to 12.35 reais.

Randon Participaoes SA (RAPT4 BS): Brazil’s biggest auto-parts maker will likely beat its own forecast for 19 percent revenue growth in 2008, Fator Corretora analyst Jacqueline Lison wrote in a Nov. 21 note. October net revenue climbed 33 percent from the previous year to 321.1 million reais ($129.7 million), beating estimates by Lison, who reiterated her “buy” rating. Randon fell 6.1 percent to 6.15 reais.

Telemar Norte Leste SA (TMAR5 BS) and Brasil Telecom Participacoes SA (BRTP4 BS): The Brazilian phone company that agreed to buy rival Brasil Telecom filed a request with the country’s telecommunications regulator to approve the purchase following a Nov. 20 change in rules governing the takeover. Telemar said it will have up to 10 days to begin carrying out its 5.86 billion real takeover after receiving approval from the regulator, known as Anatel. Telemar fell 2.4 percent to 49.50 reais. Brasil Telecom fell 5.6 percent to 15.09 reais.

Mexico

Grupo Industrial Saltillo SAB (GISSA* MM): The Mexican auto parts and building materials company said it had a third-quarter loss of 486 million pesos ($35.5 million). Gissa, as the Saltillo, Mexico- based company is known, said the loss was because of a 563 million peso charge for derivatives linked to the local currency. Gissa fell 14 percent to 4.30 pesos.

Vitro SAB (VITROA MM): Mexico’s biggest glassmaker is vulnerable to “the unstable financial situation” because of an increase in net debt and the negative value of financial derivatives, Arnulfo Rodriguez, an analyst at Citigroup Inc.’s Banamex unit, wrote in a report. Banamex lowered its recommendation on seven classes of Vitro debt lowered to “sell” from “buy” or “hold.” Vitro was unchanged at 6.80 pesos.

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.