Cemex, Telecom Argentina, Petrobras: Latin Equity Preview

By Hugh Collins

May 8 (Bloomberg) -- The following companies may have unusual price changes today in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index fell 1.5 percent to 2,762.57 In Brazil, preferred shares usually are the most-traded class of stock.

Argentina

Telecom Argentina SA (TECO2 AF): Argentina’s antitrust agency has sent two so-called observers to monitor Telecom Argentina, the country’s second-largest telephone company said in a filing with Argentina’s securities regulator. The regulator is examining whether Telefonica SA’s participation in Telecom Italia violates Argentine anti-monopoly rules. Telefonica and Telecom Italia control Argentina’s two biggest phone companies. Telecom Argentina fell 2.1 percent to 7.35 pesos.

Brazil

Gerdau SA (GGBR4 BZ): Latin America’s biggest steelmaker was cut to “neutral” from “buy” at UBS AG, which said the company reported “disappointing” first-quarter earnings. The stock fell 5 percent to 17.91 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil’s state- controlled oil company may sign an agreement to borrow from China Development Bank Corp. this month, China’s Ambassador to Brazil Qiu Xiaoqi, told reporters in Brasilia. In February, Petrobras, as the Brazilian company is known, agreed to take a $10 billion loan from China Development Bank to be used for general corporate purposes and to help pay for a $174.4 billion, five-year investment plan. Petrobras fell 1.8 percent to 31.98 reais.

Chile

Sociedad Quimica y Minera de Chile SA (SQM/B CC): Chile’s biggest fertilizer maker expects demand for lithium to increase next year as General Motors Corp. and Toyota Motor Corp. start using the material in car batteries. Toyota will begin putting lithium in batteries used in its Prius hybrid vehicles, Patricio de Solminihac, a deputy manager of Soquimich, as the company is also known, said yesterday at a conference in Santiago. He said GM will employ similar technology in its electric-powered Volt car starting next year. Soquimich fell 0.5 percent to 18,500 pesos.

Multiexport Foods SA (MULTIFOO CC): The salmon producer reported a first-quarter loss of $21 million compared with a $2 million deficit a year earlier, it wrote in a statement on its Web site. The company is negotiating with lenders to restructure debt, according to the statement. Multiexport Foods rose 3.1 percent to 50 pesos.

Mexico

Wal-Mart de Mexico SAB (WALMEXV MM): Mexican consumer confidence rose to 82.1 in April from 79.4 in March, the national statistics agency said on its Web site. Economists had estimated confidence would fall to 78.1, according to the median of 12 forecasts compiled by Bloomberg. Wal-Mart de Mexico, Latin America’s largest retailer, fell 0.8 percent to 38.92 pesos.

Cemex SAB (CEMEXCPO MM): The largest cement maker in the Americas was cut to “sell” from “hold” at Citigroup Inc., which cited the “weaker” operating outlook for the company and the rally in the shares. The stock fell 3.1 percent to 13.09 pesos.

To contact the reporter on this story: Hugh Collins in Mexico City at Hcollins8@bloomberg.net