Braskem, Cencosud, DYS, Lan, Porto Seguro: Latin Equity Preview

By Paulo Winterstein and James Attwood

Dec. 11 (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 rose 4 percent yesterday to 2,060.64.

Argentina

Cresud SACIF y A (CRES AF) and Molinos Rio de la Plata SA (MOLI AF): Argentine farmers returned to the streets to protest against the government’s policies of restricting and taxing grain and beef exports. Farmers protested in several provincial cities, Carbap, an association of farmers in Buenos Aires and La Pampa provinces, said. Agricultural company Cresud rose 4.5 percent to 2.80 pesos and Molinos 7.1 percent to 10.6 pesos.

Brazil

Braskem SA (BRKM5 BS): Brazil’s biggest petrochemicals producer said it will cut output of ethane, used to make plastic resins, to 55 percent of capacity. The cut, which is intended to “normalize” stock levels, will run through December, Braskem said yesterday in a regulatory filing. Braskem rose 0.2 percent to 5.86 reais.

Cia Brasileira de Distribuicao Grupo Pao de Acucar (PCAR4 BS): Brazil’s biggest food retailer said yesterday that November same-store sales rose 15 percent. Net sales for all stores rose 18 percent, Grupo Pao de Acucar said in a statement. Grupo Pao de Acucar fell 0.6 percent to 35.40 reais.

Porto Seguro SA (PSSA3 BS): Brazil’s fourth-largest insurance company reported higher administrative costs during the first 10 months of the year, which, along with markdowns of its investment portfolio, pushed down financial results, Fator Corretora analyst Lika Takahashi wrote in a note. Porto Seguro may see deteriorating results in coming months as new car sales slow, wrote the analyst, who has an “outperform” rating on the stock. Porto Seguro rose 1.6 percent to 13 reais.

Vivo Participacoes SA (VIVO4 BS): Brazil’s largest mobile- phone company plans to pay 1.03 billion reais ($424 million) for so-called third generation licenses over the next three years. The carrier will pay the government in six installments through 2011, according to a regulatory. Vivo, backed by Telefonica SA and Portugal Telecom SGPS, fell 2.9 percent to 35.30 reais.

Chile

Lan Airlines SA (LAN CC): Current valuations of Chile’s biggest air carrier are “attractive” and don’t incorporate the company’s positive long-term outlook, Bice Inversiones analysts wrote in a note to clients yesterday. Lan closed little changed at 5,630 pesos.

Distribucion y Servicio D&S SA (DYS CC) and SACI Falabella SA (FALAB CC): Chile’s largest grocer and department store operator, respectively, had their debt rating outlooks cut to “negative” from “stable” by Fitch Ratings, according to separate statements yesterday. D&S rose 0.6 percent to 184 pesos. Falabella gained 2.3 percent to 1,545 pesos.

Mexico

Grupo Bimbo SAB (BIMBOA MM): Mexico’s largest breadmaker said it expects to generate sales of $10 billion next year after the acquisition of George Weston Ltd.’s U.S. baked-goods unit. The company has no plans for further acquisitions within the next two years, Chief Financial Officer Guillermo Quiroz said. Bimbo fell 3.4 percent to 59 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.