Mexican homebuilders gained the most in seven weeks amid optimism the government will support the industry with subsidies aimed at curbing a housing deficit.
The Habita (HABITA) index of six homebuilders climbed 2.6 percent at 3 p.m. in Mexico City, the most since Jan. 18, as companies held meetings with investors at a conference in New York, which began yesterday. The benchmark IPC index fell 0.3 percent.
Speculation government-subsidized mortgages will drive a pickup in housing demand is boosting optimism among investors, according to Banco Santander SA. Desarrolladora Homex SAB (HOMEX*), Mexico’s largest homebuilder by sales, has positioned itself to take advantage of the subsidies, Chief Executive Officer Gerardo de Nicolas Gutierrez said in an interview yesterday.
“Industry participants made clear that the support toward the sector from the federal government would likely remain intact after the upcoming presidential elections, irrespective of the final outcome,” Banco Santander SA (SAN) analysts led by Rogelio Urrutia wrote in a note today.
Mexicans pick a new president on July 1. President Felipe Calderon isn’t on the ballot because the country doesn’t allow second terms.
Homex climbed 2 percent to 39.87 reais. Corp. Geo SAB, Mexico’s second-largest homebuilder, rose 4.3 percent to 20.15 pesos.
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 email@example.com