Bloomberg News

Brazilian Stock Movers: Comgas Advances; Gafisa and Vale Tumble

October 20, 2011

Oct. 20 (Bloomberg) -- The following companies had unusual price changes in Sao Paulo trading. Stock symbols are in parentheses and prices are as of the close of trading. Preferred shares are usually the most-traded class of stock.

The Bovespa Index tumbled 1.7 percent to 54,009.98.

Cia. de Gas de Sao Paulo (CGAS5 BS) rose 3.1 percent to 35.35 reais, the highest price since Sept. 16. Brazil’s biggest gas distributor, known as Comgas, said in a regulatory filing it will study the possibility of joining BM&FBovespa SA’s Novo Mercado segment, which requires all shares to have voting rights.

Gafisa SA (GFSA3 BS) tumbled 5.2 percent to 5.83 reais. The stock retreated from a one-month high as homebuilders declined after traders pared bets for lower borrowing costs in Brazil. The central bank yesterday cut the benchmark rate by a half percentage point, quelling speculation it would accelerate the pace of cuts.

Lupatech SA (LUPA3 BS) dropped 2 percent to 7.84 reais. Brazil’s largest oil equipment and services provider was downgraded to Caa2 from Caa1 by Moody’s Investors Service.

Vale SA (VALE5 BS) declined 1.3 percent to 37.21 reais. The world’s largest iron-ore producer dropped for a second day amid concern declines in the price for the steelmaking ingredient may deepen as China’s economy slows and the European debt crisis persists.

--Editors: Richard Richtmyer, Glenn J. Kalinoski

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net


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