Grupo Elektra SA (ELEKTRA*), the retail and banking stock that has tumbled 65 percent this year, jumped the most in eight months as billionaire Carlos Slim’s brokerage executed the majority of purchases.
Elektra’s stock soared 8.5 percent to 490.27 pesos at the close of trading in Mexico City, the biggest advance since Sept. 15. The benchmark IPC index of 35 Mexican companies rose 0.1 percent.
Grupo Financiera Inbursa SAB, the financial services firm controlled by Slim, executed purchase orders for about 680,000 shares, accounting for 53 percent of volume, according to data compiled by Bloomberg. Inbursa had executed about 102,000 Elektra purchases during the rest of 2012. The data doesn’t indicate whether the brokerage’s orders were for clients or for its own investments. An Inbursa (GFINBURO) spokesman declined to comment.
“For many investors the price is looking attractive,” said Leon Cabrera, a trader at CI Casa de Bolsa, in a telephone interview from Mexico City. The Inbursa-executed purchases “definitely help.”
Elektra had been plunging amid speculation the local stock exchange will remove it from its benchmark index and after MSCI Inc. eliminated it from its gauges. The shares have tumbled 61 percent since April 11, when the stock exchange announced changes to the guidelines for eligibility on the gauge.
The stock traded yesterday at 11.2 times trailing earnings before interest, taxes, depreciation and amortization, the cheapest since March 31, 2008. The ratio rose to 12.2 times earnings at today’s close.
Slim, 72, is the world’s richest person with a net worth of $63.8 billion, according to the Bloomberg Billionaires Index.
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