Bloomberg News

Brazilian Stock Movers: Cosan, Hypermarcas, Klabin, SLC Agricola

May 31, 2012

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

The Bovespa (IBOV) Index rose 1.3 percent to 54,490.41.

SLC Agricola SA (SLCE3) (SLCE3 BS), a farm company that produces cotton, soybeans, corn, coffee and wheat, rose 6.5 percent to 19.44 reais, the steepest gain since May 4, after announcing in a regulatory filing that it is creating a joint venture with Valiance Asset Management Ltd. to invest in Brazilian agricultural land. Valiance is investing $239 million in the venture by 2014 and will hold a 49.4 percent stake, while SLC will own the remainder.

Hypermarcas SA (HYPE3) (HYPE3 BS) rose 4.9 percent to 11.03 reais. The Brazilian maker of more than 190 consumer products said in a regulatory filing that it plans to spin off pharmaceutical assets into a new unit called Brainfarma Industria Quimica & Farmaceutica SA. Shareholders will meet June 15 to discuss the spin-off.

Klabin SA (KLBN4) (KLBN4 BS) rose 4.8 percent to 8.50 reais, the biggest gain since March 2. Latin America’s biggest paper maker said in a regulatory filing it is investing 220 million reais ($109 million) on a new machine to boost production of sack kraft paper to 213,000 tons by 2014. The company was raised to the equivalent of buy from neutral at Banco BTG Pactual. (BBTG11)

Cosan SA Industria & Comercio (CSAN3 BS), which controls the world’s largest sugar-cane processor with Royal Dutch Shell Plc (RDSA), rose 3.1 percent to 29.96 reais. The company reported first-quarter net income of 149.6 million reais, higher than an expected 133 million-real profit excluding some items, according to the average of four analyst estimates compiled by Bloomberg.

Usinas Siderurgicas de Minas Gerais SA (USIM3), the second- largest Brazilian steelmaker by output, fell 14 percent, the most in more than eight years, before MSCI Inc. removes the stock from its Brazil Index. Usiminas’ ordinary stock is one of five Brazilian securities being taken off the Brazil Index after today’s close, MSCI said May 15 in a statement.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

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


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