The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
America Movil SA (AMXL MM): Martin Lara, an analyst with Santander Central Hispano SA, recommends investors should sell mobile carrier America Movil and buy fixed-line company Telefonos de Mexico SA (TELMEXL MM) in a Sept. 19 report. Telmex’s price-to- earnings ratio is 8.7, while America Movil’s ratio is 21.9, Lara said. “Telmex has become an attractive short-term option versus America Movil because Telmex’s low multiples do not accurately reflect the recent change in the company’s strategy toward a more accelerated expansion in Latin America.'’ Telmex rose 3 centavos, or 0.3 percent, to 10.64 pesos as America Movil gained 21 centavos, or 1.6 percent, to 13.09 pesos.
Impulsora del Desarollo Economico de America Latina SA (IDEAL MM): Shares of the infrastructure company created by Mexican billionaire Carlos Slim have risen 24.5 percent since they began trading Sept. 15. Ideal, as the company is known, was spun off of Slim’s bank, Grupo Financiero Inbursa SA (GFINBURO MM). The shares rose 56 centavos, or 8.4 percent, to 7.22 pesos. Inbursa shares rose 36 centavos, or 1.9 percent, to 19.67 pesos.
Brazil
Banco do Brasil SA (BBAS3 BS): Jason Mollin, an analyst with Bear, Stearns & Co., raised his earnings forecast for Brazilians banks by an average 11 percent for this year and 14 percent for 2006. “Our higher earnings expectations for full-year 2005 reflect stronger second-quarter results as well as an even more solid earnings outlook in the rest of the year,'’ he wrote in a report. Banco do Brasil, Latin America’s biggest bank, was the one with the largest increase in earnings expectations for this year. Mollin forecasts the bank will post profit of $4.18 billion this year, 15 percent higher than the $3.62 billion previously expected. The stock rose 79 centavos, or 2.1 percent, to 37.77 reais.
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The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Cemex SA (CEMEXCP MM): The world's third-largest cement maker said yesterday it will gain about $200 million before transaction costs from the sale of existing shares. Cemex said in a statement to the Mexican stock exchange that it raised about $1.5 billion from the sale of 30.99 million of its U.S. traded shares and will use the proceeds to pay about $1.3 billion of equity futures. The futures were used
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Homex SA (HOMEX* MM): Fifteen economists in a Bloomberg survey predict the central bank will cut the overnight lending rate today to 9.25 from 9.50, after cutting the rate a quarter point last month. Shares of Mexico's largest homebuilder rose 1.06 pesos, or 2 percent, to 54.20 pesos. Shares of Corporacion Geo SA (GEOB MM), Mexico's second largest homebuilder, rose 30 centavos, or 0.9 percent, to 32.79 pesos.
Grupo
Mexico's main stock index fell for a second day, led by America Movil SA, Latin America's biggest mobile telephone company.
Mexico's Bolsa fell 197.76, or 1.3 percent, to 15,247.61 at 10:30 a.m. New York time.
Following are the stocks that are most active in the Mexican market. Brazil's stock exchange is closed for a religious holiday.
Mexico
Vitro SA (VITROA MM), Mexico's largest glassmaker, rose 63 centavos, or 5.2 percent, to 11.50 pesos. Vitro SA said yesterday that it began a formal process to sell two corporate office buildings at its Monterrey area headquarters and will use the proceeds to
America Movil Probably Tripled 4th-Qtr Net on Record New Users
America Movil SA, the mobile-telephone carrier controlled by billionaire Carlos Slim, may report that fourth-quarter profit more than tripled as it signed up a record number of subscribers.
Net income surged to 6.13 billion pesos ($586 million), or 32 cents per U.S.-traded share, from 1.64 billion pesos a year earlier, according to UBS AG's Stephen Graham, the No. 1 analyst in the Bloomberg Absolute Return Ranking of nine America Movil analysts. The Mexico City-based company will report earnings today after 4 p.m. New York time.
The jump in earnings shows
South Korean handset manufacturer Pantech has signed a deal with America Movil, a mobile operator in Central and South America, to supply 500,000 mobile phones by the end of this year.
Under the deal, Pantech is to sell 300,000 cellular phones to Mexico and 200,000 units to Argentina and Colombia through America Movil. The contract is expected to cement its presence in the Mexican market and pave the way for its efforts to sell more handsets in the region, Pantech said.
Pantech hopes to make future deals with mobile providers in Europe and the Americas.
After Pantech absorbed its newly
