Brazil's Embraer Rises; Mexico's Cemex Gains: Latin Stocks

June 6 (<a href=quote.bloomberg.com>Bloomberg) -- Brazil's benchmark stock index rose for a fourth day, led by Empresa Brasileira de Aeronautica SA, the world's fourth-largest aircraft maker known as Embraer, on investors' expectation the company may get new jet orders.

Brazil's Bovespa index of the most-traded stocks on the Sao Paulo stock exchange rose 1 percent to close at 13,923.11, its highest closing level since March 2002. The Bovespa rose 3.7 percent this week.

Mexico's Bolsa index in Mexico City was little changed, falling 2.79, or 0.04 percent, to 6870.60, accumulating a 2.6 percent gain in the week. The Argentinean Merval index rose 2.2 percent to 718.70, and 6 percent this week.

Embraer shares rose to their highest level since Jan. 31 after Deutsche Lufthansa AG, Europe's No. 3 airline, Scandinavian Airlines System, and two partners in the Star Alliance said they will make a joint order in the fourth quarter for 100 planes, that may include jets from Embraer. The orders may be worth as much as $4.5 billion. Lufthansa, SAS, Air Canada and Austrian Airlines will take an option for an additional 100 planes.

``As the airline industry gets back to its regular business activity, there's a very positive horizon for Embraer,'' said Eduardo Fornazier, who helps manage about 1.3 billion reais ($452 million) in Brazilian equities, including Embraer shares, and bonds for Banco Santos SA's asset management unit in Sao Paulo.

Other Markets

Argentina's Merval rose to its highest level since December 1997, boosting the Buenos Aires stock exchange's gains in 2003 to 63 percent in dollar terms, the best performance among 61 primary indexes tracked by Bloomberg. In local-currency terms, the index has gained 37 percent.

The Merval is the best option for investors,'' said Christian Reos, an analyst at Allaria Ledesma & Cia Sociedad de Bolsa in Buenos Aires. The U.S. dollar lost attractiveness as the (Argentine) peso strengthened 19 percent this year and interest rates are less profitable than the stocks.''

Main stock indexes in Chile, Venezuela, Peru and Colombia also rose.

The following stocks are having 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.

Brazil

Embraer (EBTP4 BS) soared 53 centavos, or 4.5 percent, to 12.23 reais, the largest gain at the Bovespa today.

Embratel Participacoes SA (EBTP4 BS), the country's largest long-distance carrier, rose 5 centavos, or 0.8 percent, to 6.34 reais. The company benefits from a stronger currency that reduces servicing costs of its debt, almost all denominated in foreign currency. The real is gaining 23 percent this year, the best performing currency among 59 tracked by Bloomberg.

Petroleo Brasileiro SA (PETR4 BS), the state-controlled oil company, rose 40 centavos, or 0.7 percent, to 54.30 reais. Petrobras, as Latin America's largest company by market value is known, said this week it found oil in a new offshore field that may boost reserves about 4.5 percent. The Rio de Janeiro-based company estimated the discovery off the coast of southern Espirito Santo state contains about 500 million barrels of oil reserves.

Mexico

Cemex SA (CEMEXCP MM), the world's third-largest cement maker, gained 86 centavos, or 1.8 percent, to 47.71 pesos. The company said 98 percent of its shareholders took the option of receiving their dividend payment in stock rather than cash. ``We consider the high acceptance of the dividend as a favorable element for the company,'' said Carlos Perezalonso, an analyst at Grupo Financiero BBVA-Bancomer SA.

Consorcio ARA SA (ARA* MM), Mexico's largest construction company, slipped 71 centavos, or 3.7 percent, to 18.44 pesos. The shares have gained 19 percent this year.

Grupo Aeroportuario del Sureste (ASURB MM), which manages nine airports in Mexico, including the airport at the Caribbean resort town Cancun, gained 35 centavos, or 2.5 percent, to 14.3 pesos. The company reported passenger traffic in May grew 11.2 percent. Figures for the month of May again look very encouraging,'' said Miguel Machado an analyst at UBS Warburg LLC. Our view is that Asur is on track to a record year, leaving the 9/11 and Iraq war aftermath behind.''

Grupo Televisa SA (TLEVICPO MM), Mexico's largest broadcaster, rose for a sixth day, gaining 28 centavos, or 1.6 percent, to 17.55 pesos. Shares have gained 22 percent this year. Niall Paul, who manages $300 million in Latin American equities at Morley Fund Management in London, said Televisa will be one of the stocks to react most rapidly to a pick-up in Mexico's economy.

TV Azteca SA (TVAZTCPO MM), Mexico's second-largest broadcaster, gained for the fifth day in six, rising 12 centavos, or 3 percent, to 4.12 pesos, bringing this year's rise to 35 percent.

Organizacion Soriana SA (SORIANAB MM), a supermarket chain operator, rose 29 centavos, or 1.4 percent, to 21.7 pesos. Some analysts say low rates may also help boost consumption. ``Lower interest rates should help the credit supply for consumers,'' Jose Alberto Galvan, an analyst at BBVA-Bancomer SA, wrote in a research note.

Argentina

Banco Bansud SA (BSUD AR), rose 6 centavos, or 3.3 percent, to 1.88 pesos, the highest price since April 2000. ``Next week Argentina's Congress may debate on bank compensations,'' said Mariano Tavelli, an analyst at brokerage Tavelli & Cia. Sociedad de Bolsa in Buenos Aires. Argentina pledged to offset banks for losses caused after the country forced them to convert all U.S. dollar deposits and loans into pesos at different exchange rates.

Grupo Galicia (GGAL AR), the country's second-largest bank, rose 9 centavos, or 9 percent, to 1.07 peso, heading to its highest price since August 2001. Argentina's Economy Minister said the country may make its first offer on defaulted debt in September. Galicia is the bank with most government bonds.

Transportadora de Gas del Sur SA (TGSU2 AR), which transports and processes natural gas, rose 1 centavo, or 0.6 percent, to 1.64 pesos. Gas companies told Daniel Cameron, Argentina's secretary of Energy, they need a 40 percent increase to avoid shortage this winter, newspaper El Cronista reported. Utilities tariffs have been frozen since Argentina devalued its currency in January 2002.

Colombia

Bavaria SA (BAVAR CB), Colombia's largest brewer, rose 400, or 3 percent, to 13800, as rising beer sales boost prospects for strong earnings.

Cemento Argos SA (ARGOS CB), the largest cement holding, rose 150 pesos, or 1.5 percent, to 10200, as investors bet the first quarter's 3.8 percent economic growth signals greater demand for construction, a trader said.

Corporacion Financiera Suramericana y Nacional SA (CORFINS CB), Colombia's largest financial corporation, surged 175, or 5.9 percent, to 3165. The company's first-quarter net income rose 82 percent to 22.6 billion pesos ($7.7 million) from the same period a year ago.

Cia. Colombiana de Inversiones SA (COLINV CB), Colombia's fifth-biggest holding by assets, rose 70 pesos, or 2.4 percent, to 2050 pesos. The stock price has gained 150 percent in the past 12 months.

Peru

Volcan Cia. Minera SA (VCM/B PE) shares rose 3 centimos, or 9.4 percent, to 35 centimos. The company, Peru's top zinc miner, has said it is allowing due diligence review of its assets and books to a Swiss, a Brazilian and a Peruvian company as it searches for a partner to contribute funds. The company's operations have been unprofitable because of a decline in zinc prices.

Minsur SA (MIN PE), Peru's only tin miner, rose 5 centimos, or 1.2 percent to 4.20 soles. Tin price for three-month delivery rose $10 to $4,720 a metric ton in the London Metal Exchange from yesterday.