Mexico's America Movil, Brazil's Banco Itau Gain: Latin Stocks

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May 30 (<a href=quote.bloomberg.com>Bloomberg) -- Mexican stocks gained for a third day in four, led by America Movil SA, on optimism that strong demand for cellular services in Mexico will help Latin America's largest mobile phone company boost profit this year.

Mexico's Bolsa index rose 51.47, or 0.8 percent, to 6699.18, finishing the week with a gain of 1.7 percent. Brazil's Bovespa index of the most-traded stocks on the Sao Paulo stock exchange climbed 0.1 percent to 13,421.60, ending the week 2.1 percent higher. Venezuela's main stock index jumped for a 12th day, rising 4.1 percent to 12,779.62 and closing the week with a 30 percent rise, the biggest since at least 1994.

Shares of America Movil gained as investors expect the Mexican cellular market, the company's main source of income, will continue to expand at a faster rate than fixed-line services, helping the company's profit climb.

We like the dynamics of the cellular market in Mexico, particularly in comparison to the staggering conditions in the fixed-line market,'' said Robert Hulme, who manages about $29 million in Latin American equities at DNB Asset Management in London. People have been surprised about the resilience for demand in the cellular market.''

Other Markets

In other markets, the main indexes in Chile, Colombia and Peru were little changed, while Argentine shares gained. Colombia's IGBC Index of most traded shares finished the week 7.7 percent higher, posting the biggest weekly gain since Jan. 10.

The following stocks had significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil the preferred share is usually the company's most-traded class of stock.

Mexico

America Movil (AMXL MM) gained 16 centavos, or 1.7 percent, to 9.45 pesos. The shares have gained 26 percent this year.

Grupo Mexico SA (GMEXICOB MM), the world's third-largest copper miner, gained for a fourth day, rising 70 centavos, or 4.7 percent, to 15.55 pesos. Copper futures for July delivery gained 1.3 percent to 78.25 cents per pound on the Comex division of the New York Mercantile Exchange.

Industrias Penoles SA (PE&OLES* MM), the world's largest silver producer, gained 82 centavos, or 4.6 percent, to 18.5 pesos.

TV Azteca SA (TVAZTCPO MM), Mexico's second-largest broadcaster, gained 4 centavos, or 1 percent, to 3.91 pesos. The stock has gained 25 percent since April 1. TV Azteca impressed the market with its recent rally,'' Carlos Perezalonso, an analyst at Grupo Financiero BBVA-Bancomer SA, wrote in a research note. We see positive developments on most operating issues.''

Brazil

Banco Itau SA (ITAU4 BS), the country's second-largest private bank, fell 6.01 reais, or 2.9 percent, to 200 reais, on concern a possible interest rate cut would reduce banks' profit.

Embratel Participacoes SA (EBTP4 BS), Brazil's largest long- distance operator, rose 10 centavos, or 1.8 percent, to 5.69 reais, adding to a 6.3 percent gain yesterday.

Telesp Celular Participacoes SA (TSPP4 BS), the country's largest wireless phone company, rose 5 centavos, or 1.1 percent, to 4.74 reais. We see attractive valuations in the Brazilian cellular companies as good operating performance continues,'' Vera Rossi, an analyst with Morgan Stanley, said in a report. Industry consolidation and reduction in country risk are the major catalysts, we believe, for stock performance.''

Argentina

Acindar Industria Argentina de Aceros (ACIN AR), Argentina's biggest maker of steel rods, rose 3 centavos, or 1.3 percent, to 2.31 pesos, tripling its price so far this year. The company will buy back $40 million worth of dollar-denominated debt as part of its debt restructuring. Acindar will pay $26 million in cash for the 11.25 percent bond due 2004 and ``certain'' of its dollar- denominated debt after holders accepted $650 per $1,000 of principal, the company said in a statement.

Banco Bansud SA (BSUD AR), rose 1 centavo, or 0.6 percent, to 1.66 pesos. Argentina's central bank lowered the minimum capital requirements for private banks and raised them for public banks, El Cronista reported, citing a central bank statement. The central bank said private banks will need to have 8 percent of their assets backed by their own capital, down from 11 percent, Cronista said.

Colombia

Banco de Bogota SA (BOGOTA CB), flagship of the largest banking group, declined 100, or 1.3 percent, to 7900. The stock has gained 64 percent in the last 12 months.

Almacenes Exito SA (EXITO CB), Colombia's largest retail group, declined 100, or 2.9 percent, to 3400, following yesterday's 8.5 percent gain.

Peru

Nonvoting shares of UCP Backus & Johnston SA (BJ PE), Peru's largest brewer, rose 3 centimos, or 2.2 percent, to 1.39 soles, recovering from losses earlier in the week after protesters seeking higher wages and lower taxes blocked highways all across Peru. The army reopened roads two days ago after President Alejandro Toledo declared a state of emergency.

Edegel SA (EDE PE), Peru's biggest privately owned electricity generator, rose 5 centimos, or 4.6 percent, to 1.15 soles, near a six-year high. The stock gained for a third day. Spain's Endesa SA (ELE SM) owns the company.

Venezuela

Mercantil Servicios Financieros CA (MVZ/A VC), holding company for Venezuela's largest bank, surged 200 bolivars, or 11 percent, to 2000 bolivars. The company said earlier this month first-quarter profit soared 53 percent. Shares have risen 52 percent since May 20.

CA Electricidad de Caracas (EDC VC), a subsidiary of AES Corp. and Venezuela's largest publicly-traded power company, climbed 8 bolivars, or 4.3 percent, to 193 bolivars. The company said earlier this month its first-quarter loss narrowed on operating cost cuts. The shares have risen 61 percent since May 19.