(Updates share price in second paragraph.)
Nov. 4 (Bloomberg) -- Axtel SAB, Mexico’s second-largest land-line telephone company, posted the biggest weekly drop since August amid growing concern about its cash flow.
Axtel fell 1.6 percent to 4.23 pesos today, extending the weekly decline to 12 percent, the steepest since the period ending Aug. 5.
Swings in Mexican stock prices are exacerbating the drop for Axtel after the San Pedro Garza Garcia, Mexico-based company cut its cash-flow projections and posted a third-quarter net loss of 1.02 billion pesos ($76 million) last week. Axtel forecast negative free cash flow of $15 million to $20 million in 2011, down from a previous forecast to break even, according to a conference call with analysts on Oct. 28.
“The market didn’t like that they’re not meeting expectations,” said Martin Lara, an analyst at Corp. Actinver SAB in Mexico City.
Axtel has retreated 41 percent this year. The IPC benchmark is down 4.8 percent in the period.
--Editors: Glenn J. Kalinoski, Marie-France Han
To contact the reporter on this story: Jonathan J. Levin in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at Papadopoulos@bloomberg.net