Petrobras, TGS, Itau, Cementos Argos: Latin Equity Preview

By James Attwood

Nov. 4 (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 1.9 percent yesterday to 2,182.43. Colombian markets were closed yesterday for a holiday.

Argentina

Petrobras Energia Participaciones SA (PBE AF): The unit of Brazil's state-controlled oil company said it will start to pay the Ecuadorian government 70 percent of revenue over an agreed ``base price'' for its Pata and Palo Azul oil fields in the South American country. Ecuador will take 40 percent ownership of Pata and 60 percent of Palo Azul through the accord. Petrobras Energia Participaciones rose 5.1 percent to 2.47 pesos.

Transportadora de Gas del Sur SA (TGSU2 AF): The natural gas processor and transporter reported a 10-fold increase in third- quarter profit. Net income rose to 37 million pesos ($10.9 million) from 3 million pesos a year earlier. That beat Grupo SBS's estimate of 34.5 million pesos, the brokerage wrote. TGS rose 4.7 percent to 1.35 pesos.

Brazil

Banco Itau Holding Financeira SA (ITAU4 BS): Itau's estimated 26.5 billion real ($12.5 billion) purchase of Uniao de Bancos Brasileiros SA (UBBR11 BS) will provide ``muscle'' to help the banks compete globally, said Aloisio Mercadante, a senator from Brazil's Sao Paulo state and a leading member of Brazilian President Luiz Inaco Lula da Silva's Workers' Party. Itau rose 16 percent to 27.09 reais. Unibanco gained 9 percent to 14.97 reais.

Colombia

Bancolombia SA (BCOLO CB): The American depositary receipts (CIB US) of Colombia's biggest lender rose 7.1 percent in New York yesterday when local trading was closed for a public holiday. Bancolombia rose 4.3 percent to 12,100 pesos when it last traded Oct. 31.

Cementos Argos SA (CEMARGOS CB): Colombia's biggest cement market is facing a ``weaker'' domestic construction industry next year, Banco Santander SA analysts including Alonso Aramburu wrote in a note yesterday. Cementos Argos rose 2.6 percent to 6,000 pesos.

Mexico

Grupo Mexico SAB (GMEXICOB MM): The country's largest mining company said it will pay its third-quarter dividend with stock instead of cash. Current shareholders will be paid one share for every 35 they already hold, the company said. Grupo Mexico fell 3.8 percent to 10.53 pesos.

To contact the reporters on this story: James Attwood in Santiago at jattwood3@bloomberg.net.