Oct. 31 (Bloomberg) -- Citigroup Inc.’s Banamex unit bought 2.3 million shares of America Movil SAB for 4.1 percent more than the day’s average price, causing a three-second spike in the telecommunications company controlled by billionaire Carlos Slim.
Banamex’s Mexico City-based Acciones y Valores brokerage bought the shares of America Movil from 7:45:24 a.m. to 7:45:26 a.m. in Mexico City, paying 17.79 pesos each, according to a weighted average of the transactions executed in those three seconds. That’s a premium of 4.1 percent from today’s average of 17.09 pesos, according to data compiled by Bloomberg.
“With the market falling about 1 percent in the morning, it’s clearly an error,” said Martin Lara, an analyst at Corp. Actinver SAB in Mexico City. “It doesn’t have anything to do with fundamentals or announcements.”
The stock surged as much as 9.4 percent to 18.80 pesos on the trade, and then reversed itself. It fell 1 percent to 17.01 pesos at the close in Mexico City today.
Eduardo Navarro, chief executive of Banamex’s brokerage unit, declined a request for comment through spokeswoman Angela Meraz.
Data compiled by Bloomberg that lists the parties that executed a trade doesn’t show whether the shares were purchased for a bank’s own investment purposes or on behalf of clients.
An America Movil official who asked not to be identified, citing company policy, declined to comment.
--With assistance from Ralph Cope and Crayton Harrison in Mexico City. Editors: Brendan Walsh, Laura Zelenko
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