Cemex SAB (CEMEXCPO), the largest cement maker in the Americas, led declines on Mexico’s benchmark index as Grupo Financiero Banorte SAB said gains among the country’s best performing equities may be overdone.
Cemex, the gauge’s second-best performer in the first quarter, fell 2.1 percent to 9.70 pesos at 2:21 p.m. in Mexico City, while Empresas Ica SAB (ICA*), the country’s top stock in the period, declined 1.6 percent to 23.99 pesos. The IPC gauge fell 0.1 percent.
“For short-term investment strategies, we can suggest taking profits on the companies that have had the biggest gains in the past days,” said Carlos Hermosillo, an analyst with Banorte, in an e-mailed research note. “The market is getting ahead of itself.”
Mexico’s benchmark index extended gains to a record yesterday, one session after central bank minutes published March 30 showed policy makers are considering cutting interest rates. The IPC (MEXBOL) trades at 19.8 times trailing 12-month earnings, compared with 13.9 times for MSCI Inc.’s Latin America (MXLA) index.
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