Bloomberg News

Banorte Jumps as JPMorgan’s $76 Million Trade Swells Volume

December 12, 2011

(Updates prices in second paragraph.)

Dec. 9 (Bloomberg) -- Grupo Financiero Banorte SAB, Mexico’s third-largest bank by loans, climbed the most in a week as a $76 million JPMorgan Chase & Co.-arranged transaction sent volume to a three-month high.

Banorte rose 3.3 percent, the biggest advance since Nov. 30, to 45.74 pesos in Mexico City. Volume soared 491 percent from its three-month average to 26.9 million shares as JPMorgan executed a trade moving 23.3 million shares at 44.70 pesos for a total of 1.04 billion pesos ($76 million), according to data compiled by Bloomberg. Rebeca Vargas, a spokeswoman at JPMorgan, which acted on both the buyer and seller’s behalf, declined to comment on the transaction.

The Monterrey, Mexico-based bank is benefitting from a pickup in spending after retailers kicked off the holiday gift- buying season with a weekend of discounts modeled after Black Friday in the U.S., said Jorge Lagunas, who oversees about $200 million as a money manager at Grupo Financiero Interacciones.

“Consumer credit, which is an important part of banking here, is taking off,” Lagunas said in a telephone interview from Mexico City. “All of those credits create business for the banks.” Lagunas said he bought Banorte shares today.

Wal-Mart de Mexico SAB said Dec. 6 that Mexican same-store sales surged the most in five years last month after the four- day holiday shopping initiative known as Buen Fin, which ran from Nov. 18 to Nov. 21.

--Editors: Richard Richtmyer, David Papadopoulos

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

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


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