Aracruz, Bradesco, Natura, Tam, VCP: Brazilian Equity Movers

By Paulo Winterstein

Jan. 20 (Bloomberg) -- The following companies are having unusual price changes in Brazil trading. Stock symbols are in parentheses, and prices are as of 9:08 a.m. New York time. Preferred shares are usually the most-traded class of stock.

The Bovespa Index rose 0.3 percent to 38,940.10.

Aracruz Celulose SA (ARCZ6 BS) led declines on the index, losing 11 percent to 2.35 reais. The world’s biggest eucalyptus- pulp producer renegotiated part of its $2.63 billion debt with banks. The accord is “no magic bullet” and leaves Aracruz with “a huge debt load and high interest and amortization payments that will be difficult to meet,” Deutsche Bank analyst Josh Milberg wrote in a note to clients today.

Votorantim Celulose & Papel SA (VCPA4 BS) dropped 1.9 percent to 15.85 reais. Brazil’s third-biggest pulp maker agreed to pay 2.71 billion reais ($1.16 billion) to double its 28 percent stake in Aracruz.

Banco Bradesco SA (BBDC4 BS) rose for a second day, adding 0.6 percent to 21.36 reais. Brazil’s second-biggest non- government bank said it will raise its monthly dividend payments by 10 percent starting next month.

Natura SA (NATU3 BS) gained the most in a week, adding 2.5 percent to 19.85 reais. Brazil’s biggest cosmetics company is JPMorgan Chase & Co.’s “top pick” among Brazil’s consumer stocks, with “sales mix resilience being key to resist worsening economics” analyst Andrea Teixeira wrote.

Tam SA (TAMM4 BS) rose for the first time in three days, adding 1.1 percent to 18.30 reais. Brazil’s biggest airline rose as oil prices dropped below $33 a barrel. Second-largest airline Gol Linhas Aereas Inteligentes SA (GOLL4 BS) increased 0.3 percent to 11.33 reais.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.