Bloomberg News

Mexico Stocks: Cemex, Consorcio Ara, Grupo Mexico Fall

October 17, 2011

Oct. 17 (Bloomberg) -- The following companies had unusual price changes in Mexico trading. Stock symbols are in parentheses and prices are as of the close of trading.

The IPC index fell 2.1 percent to 34,125.70.

Cemex SAB (CEMEXCPO MM), the largest cement maker in the Americas, sank 11 percent to 4.48 pesos after gaining 30 percent last week. Investors cut back demand for riskier assets amid waning optimism for a quick resolution to Europe’s sovereign debt crisis. German government spokesman Steffen Seibert said today that euro-area leaders will not provide a quick ending to the debt crisis at their next meeting.

Consorcio ARA SAB de CV (ARA* MM), Mexico’s fourth-largest homebuilder, declined 7.7 percent to 3.72 pesos, its lowest price since March 2009. The company was downgraded to “underweight” from “overweight” at HSBC by equity analyst Francisco Suarez Savin, with a target price of 3.50 pesos per share.

Grupo Mexico SAB (GMEXICOB MM), the country’s largest mining company, fell 3.9 percent to 33.87 pesos. A Delaware judge ruled that the company must return $1.3 billion in shares to its Southern Copper unit for forcing it to overpay in 2004 for a Mexican mining company. Juan Rebolledo, a Grupo Mexico spokesman, said the company will appeal the ruling.

--Editors: Glenn J. Kalinoski, Marie-France Han

To contact the reporter on this story: Katia Porzecanski in New York at kporzecansk1@bloomberg.net

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


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