CPFL Energia, Grupo Mexico and Telemig: Latin Equity Preview

The following stocks may make significant gains or losses in Brazil, Chile and Mexico today. Symbols are in parentheses after the company name, and stock prices are from the last session.

In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

CPFL Energia SA (CPFE3 BS): Second-quarter earnings at Brazil's third-biggest electricity company by market value may jump 51 percent from a year earlier as energy demand increases, Socopa Corretora analyst Daniel Doll Lemos wrote in an report e- mailed yesterday. The company is scheduled to report earnings tomorrow. The shares rose 51 centavos, or 1.5 percent, to 35.50 reais.

Telemig Celular Participacoes SA (TMCP4 BS) and Tele Norte Celular Participacoes SA (TNCP4 BS): Standard & Poor's Ratings Services may raise the rating of the two wireless carriers after Vivo Participacoes SA, Brazil's biggest mobile-phone company, said it will buy a controlling stake in both. S&P rates Telemig BB-, or three levels below investment grade, and Tele Norte, also known as Amazonia Celular, B+, or four levels below investment grade. Telemig rose 10 centavos, or 1.9 percent, to 5.40 reais. Amazonia rose 1 centavo, or 1.9 percent, to 55 centavos.

Chile

Empresa Nacional de Telecomunicaciones SA (ENTEL CC): Chile's second biggest wireless company reported a 3 percent drop in second-quarter profit to 33.4 billion pesos ($63.9 million) from 34.5 billion a year earlier. Sales rose 1 percent to 211 billion pesos, while earnings before interest, taxes, depreciation and amortization jumped 10 percent, the Santiago- based company said in an e-mailed statement. Excluding proceeds from an asset sale last year, profit rose 36 percent, the company said. Shares fell 76.20 pesos, or 0.9 percent, to 8,458 pesos.

Empresas Iansa SA (IANSA CC): Chile's largest sugar maker yesterday reported a 70 percent drop in first-half profit from a year earlier, according to data published after the close of trading on the regulator's Web site. Inferred second-quarter profit dropped to 527 million pesos ($1 million) from 3 billion pesos a year earlier. Shares fell 23 centavos, or 0.4 percent, to 55.75 pesos.

Mexico

Empresas ICA SAB (ICA* MM): Mexico's largest construction company will report the financial results of a new highway concession it won starting in the fourth quarter under a line item for unconsolidated affiliates, the company said in a filing with the U.S. Securities and Exchange Commission yesterday. Mexico's Communications and Transportation Ministry awarded the company with partner Goldman Sachs Group Inc. a contract to operate four toll highways today for a bid of $4.1 billion. Shares rose 37 centavos, or 0.5 percent, to 71.15 pesos.

Grupo Mexico SAB (GMEXICOB MM): Regulators may rule today on the legality of a strike that has disrupted output at three mines belonging to Grupo Mexico, Mexico's largest copper mining company, according to the newspaper El Universal. Shares fell 54 centavos, or 0.8 percent, to 69.45 pesos.

source:bloomberg.com